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  • FIRST POST
    • Nfinch
    • By Nfinch 9th Aug 18, 2:51 PM
    • 3Posts
    • 0Thanks
    Nfinch
    Mortgage Retention more than Mortgage
    • #1
    • 9th Aug 18, 2:51 PM
    Mortgage Retention more than Mortgage 9th Aug 18 at 2:51 PM
    Hi, I'm hoping someone out there may be able to offer me some advice. I've applied for a 100k mortgage which initially was returned all fine and approve. Then I've been told that there is a retention on the amount but on 192k?

    This was arranged through a mortgage broker and I have asked them to double check this is right and someone hasn't made a typo but he's come back to say this is correct. I'm waiting for the full report to get a idea of the work they are requesting.
    But has anyone ever come across this before, even the mortgage broker hasn't - I can only assume it's a mistake...

    Any help much appreciated!

    Thanks
Page 1
    • AnotherJoe
    • By AnotherJoe 9th Aug 18, 3:17 PM
    • 11,813 Posts
    • 13,757 Thanks
    AnotherJoe
    • #2
    • 9th Aug 18, 3:17 PM
    • #2
    • 9th Aug 18, 3:17 PM
    LOL. Better get your cheque book out !
    • ACG
    • By ACG 9th Aug 18, 3:52 PM
    • 17,948 Posts
    • 9,730 Thanks
    ACG
    • #3
    • 9th Aug 18, 3:52 PM
    • #3
    • 9th Aug 18, 3:52 PM
    192k is the purchase price im assuming?

    It just means they are not happy to lend on the property until the works are complete. Other lenders may take a different view. The alternative would be to have the works completed and another valuation carried out, which could be done before or after exchange.

    Speak to your broker, your agent and solicitor.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Nfinch
    • By Nfinch 9th Aug 18, 8:43 PM
    • 3 Posts
    • 0 Thanks
    Nfinch
    • #4
    • 9th Aug 18, 8:43 PM
    • #4
    • 9th Aug 18, 8:43 PM
    Thanks. We!!!8217;ve already tried to get a mortgage through Coventry but they refused because its got a small section of low grade asbestos (they wouldn!!!8217;t even consider a retention for this).

    The price we!!!8217;re paying is 200k but can!!!8217;t see how they can ask for more retention than we need the mortgage of. I!!!8217;m not even sure what kind of work they want.

    Would all work need to be carried out before exchange or would a bridging loan be a good alternative to get the sale completed? This is new to me so am not sure if this work can be down between signing the contracts before the exchange or if the whole sale needs to be completed. I doubt there would be any reduction on the purchase price or the current owners doing it.
    • AnotherJoe
    • By AnotherJoe 9th Aug 18, 8:50 PM
    • 11,813 Posts
    • 13,757 Thanks
    AnotherJoe
    • #5
    • 9th Aug 18, 8:50 PM
    • #5
    • 9th Aug 18, 8:50 PM
    I doubt there would be any reduction on the purchase price or the current owners doing it.
    Originally posted by Nfinch
    The owners position on that might change if they found their house is unmortagable. Have you tried other lenders?
    • Nfinch
    • By Nfinch 10th Aug 18, 8:26 AM
    • 3 Posts
    • 0 Thanks
    Nfinch
    • #6
    • 10th Aug 18, 8:26 AM
    • #6
    • 10th Aug 18, 8:26 AM
    Yeah the first one declined the mortgage because if a small amount of asbestos. We!!!8217;ve been trying to get permission to have the work done before signing at our own cost but the seller wants everything in the contract, even though we have builders insurance.

    This is the second one we!!!8217;ve tried.
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