I am hoping that some posters may have some experience or advice for our current situation that is causing a fair amount of stress.
Have gone sale agreed on a rural property in the South West since October.
Is a 4 bed dormer on 2 acres and has a smaller 2 bed cottage in need of renovation on site. This information clearly stated in original application for mortgage.
Sale price is for 190k and we have have had ("had" being the operative word) full mortgage approval for the property.
Vauler went out and valued property at 190k but seemingly only looked at larger house.
We signed loan agreement and bank sent out mortgage pack to our solicitor pre Xmas and we were arranging all the necessary home and mortgage protection.
In the interim our solicitor asked the pack to be reissued with the correct address ( looks like mistake on banks part transcribing address from valuers handwriting) and also pointed out to bank that property was comprised in two separate folios - we weren't aware of that at this stage either.
This is were things have started to stumble.
Initially the bank said "we will only lend and take a charge over 1 folio number" and advised us to get both folios merged...not possible inthe real world according to our solicitor esp not pre sale.
Then they said the would lend the full amount for the sale but take charge over only one folio (the part containing house to be purchased obviously) provided our solicitor provided a formal letter to say both folios have clear boundaries seperate road access etc.we thought this strange that they would choose to take charge over 1 but followed their advice. In the meantime we were told to get our solicitor to request cheque drawdown. Our solicitor provided an email stating what they needed ,"that's great"mortgage advisor said ,we just need it on headed paper etc and its a " formality "then we can drawdown.
We then signed contracts and were waiting cheque.Kept hearing from mortgage advisor "get your solicitor to request cheque" and from solicitor "I have requested cheque".
Eventually after a long delay and an increasingly frustrated vendor (solicitor has held our signed contracts until all funding secured) our mortgage advisor calls to say that underwriter have decided not to lend full amount. OK...how much will they lend on same?no clear answer forthcoming.
To be clear there is no issue with our affordability here. The issue is all property related.
And so it goes back to the underwriter to decide. Shouldn't we get a new valuation to decide this I suggest ? No original valuer can do this if needed I'm told.
So I called valuer this morning - he hasn't heard from them re this issue.
At the moment it looks like small personal loan and mortgage to complete purchase which still should be OK on affordability criteria but in what ratio no-one seems to know and I'm getting the silent treatment from mortgage advisor at present who isn't responding to emails/texts and getting junior members to take phone calls.
Each delay and back and forth with the bank seems to take weeks despite prompt provision of what they request by our side.
Im afraid we might lose the sale if a firm decision isn't made quickly and have I started arranging funding with another bank. (Frustratingly mortgage advisor told us we didn't need to do this months ago)
Does anyone have any advice about what we can do to speed up the resolution and also what would the advice be if sale falls through due to bank delay given we signed a loan agreement with them pre xmas?
Its the unprofessional nature of their dealings that irks me do much.
Thanks for reading
Have gone sale agreed on a rural property in the South West since October.
Is a 4 bed dormer on 2 acres and has a smaller 2 bed cottage in need of renovation on site. This information clearly stated in original application for mortgage.
Sale price is for 190k and we have have had ("had" being the operative word) full mortgage approval for the property.
Vauler went out and valued property at 190k but seemingly only looked at larger house.
We signed loan agreement and bank sent out mortgage pack to our solicitor pre Xmas and we were arranging all the necessary home and mortgage protection.
In the interim our solicitor asked the pack to be reissued with the correct address ( looks like mistake on banks part transcribing address from valuers handwriting) and also pointed out to bank that property was comprised in two separate folios - we weren't aware of that at this stage either.
This is were things have started to stumble.
Initially the bank said "we will only lend and take a charge over 1 folio number" and advised us to get both folios merged...not possible inthe real world according to our solicitor esp not pre sale.
Then they said the would lend the full amount for the sale but take charge over only one folio (the part containing house to be purchased obviously) provided our solicitor provided a formal letter to say both folios have clear boundaries seperate road access etc.we thought this strange that they would choose to take charge over 1 but followed their advice. In the meantime we were told to get our solicitor to request cheque drawdown. Our solicitor provided an email stating what they needed ,"that's great"mortgage advisor said ,we just need it on headed paper etc and its a " formality "then we can drawdown.
We then signed contracts and were waiting cheque.Kept hearing from mortgage advisor "get your solicitor to request cheque" and from solicitor "I have requested cheque".
Eventually after a long delay and an increasingly frustrated vendor (solicitor has held our signed contracts until all funding secured) our mortgage advisor calls to say that underwriter have decided not to lend full amount. OK...how much will they lend on same?no clear answer forthcoming.
To be clear there is no issue with our affordability here. The issue is all property related.
And so it goes back to the underwriter to decide. Shouldn't we get a new valuation to decide this I suggest ? No original valuer can do this if needed I'm told.
So I called valuer this morning - he hasn't heard from them re this issue.
At the moment it looks like small personal loan and mortgage to complete purchase which still should be OK on affordability criteria but in what ratio no-one seems to know and I'm getting the silent treatment from mortgage advisor at present who isn't responding to emails/texts and getting junior members to take phone calls.
Each delay and back and forth with the bank seems to take weeks despite prompt provision of what they request by our side.
Im afraid we might lose the sale if a firm decision isn't made quickly and have I started arranging funding with another bank. (Frustratingly mortgage advisor told us we didn't need to do this months ago)
Does anyone have any advice about what we can do to speed up the resolution and also what would the advice be if sale falls through due to bank delay given we signed a loan agreement with them pre xmas?
Its the unprofessional nature of their dealings that irks me do much.
Thanks for reading