NatWest declined mortgage

tab99uk

Hello, NatWest decline our mortgage application due to valuation they said not many investors or hoses sold in the area my house is worth 160k and borrowing only 90k.

im taking equity out my house for a new house my house is mortgage free so got loads of equity is their anyway i can appeal this decision applied via a broker??

thanks

K_S

@tab99uk So you applied to take out a 90k mortgage on an unencumbered 160k property, so <60% LTV. Even if it were down-valued significantly, there's still enough room for the mortgage to go through.

Was it down-valued (so valued at say 120k instead of 160k) or nil-valued (not suitable security, usually due to some issue with the property itself). And is this a BTL or the property you live in? You first need to understand the exact reason for the decline.

Normally, there's not much point in appealing valuation declines.What is your broker suggesting as a next step?

tab99uk

k_s  should of made it a bit more clear im buying a 250k property  i have a 2 mortgages 1 with skipton for 140k which has gone through and 1 with natwest for 90k for my current property im living in now  which is valued at 160k so have loads of equity as the house is paid off.

the house im living is residential property as my house but want let it out and borrow 90k towards new home im buying now 

tab99uk

they reason was not many properties have been sold in the area and investors dont want to invest in the area and not enough interest in area and if we were to reposes the house we wont get our 90k back.

i dont know where they get that information from the surveyors their not even from the area how do they know 


this is ex council house a house just sold for 170k few doors up from me in 2 weeks and theirs loads of buy to lets in the area broker told me they wont budge on the valuation report but have to appeal.

they told me to get broker to get in touch with them.

housebuyer143

Sounds like NatWest feel there isn't enough rental demand in the area or the surveyor isn't confident there is? 
No point appealing in all honestly, best to try elsewhere.

K_S

@tab99uk Ah got it, so you're doing a let to buy with Skipton on the residential purchase and NatWest on the BTL remortgage.

Based on the limited info in your post and the amount required, your broker should be able to place it with an alternate lender that (ideally) uses a different surveyor panel and doesn't charge a val fee. If they give an adverse valuation as well then it's time to look at alternate plans.

Unless you have clear recent comparables, valuation appeals rarely return a positive result. Hope it works out in the end, good luck!

Thrugelmir

Having equity in the property isn't how mortgage lenders approach the matter. It's more to do with the level of indebtedness you'll have in total, i.e. £230k, and the affordability issues should you have if no rental income is forthcoming. Leveraging in a climate of rapidly rising interest rates may not be wise. 

Brie

double check that whoever actually did the valuation got the right house.  a buyer for MiL's flat said it wasn't worth the price as it was in a dreadful state for a new build.  It was in fact a conversion of a Victorian vicarage

tab99uk

the valuation was done by L&G looks like they have a lot of negative reviews

income is not a problem im self employed driver on 30k pa  credit report perfect have full 100%  equity and mortage free just cleared it all last month.

Thrugelmir

tab99uk said:

the valuation was done by L&G looks like they have a lot of negative reviews

Negative in what way?  Most valuations are conducted on behalf of the lender. Not the potential purchaser.