mortgage query

Discussion in 'benefits and housing' started by Hellsbells, Oct 26, 2017.

  1. Hellsbells

    Hellsbells World's best procrastinator

    Our bank definitely go to our property. They've had to contact the Estate Agent to get hold of the keys & arrange a time with the vendors.
     
  2. mauvais

    mauvais change has become unavoidable

    Sound advice, although in England, 95% LTV is alive and kicking once more. I'm not taking one so I don't know if it requires additional security, but I don't think so. Certainly 80% is happy days.
     
  3. Hellsbells

    Hellsbells World's best procrastinator

    It's a fairly new-ish build. The bank said it really wouldn't be necessary to have another survey. I'd definitely have another one if it was an older house but it's in very good, solid condition from what we could tell on our viewing.
     
  4. hash tag

    hash tag Pedicabo omnes

    A bank valuation is just that a valuation. It is simply to ensure that the lender will get their money back money back if the borrower defaults and the property has to be repossessed and sold.
    The borrower should not rely upon this valuation to ensure that the property is free from defects. Don't just use your eyes when agreeing to buy somewhere as there are many things you can do yourself......does every door and window open and close freely, do all the taps run and drain freely, is there hot water, does the heating work is there a smell of damp or rot is all the woodwork and stonework relativly solid?
     
  5. Hellsbells

    Hellsbells World's best procrastinator

    We checked all this when we viewed it. Having rented for years and experienced all kinds of issues, we know what to look for. We had a long checklist & tested everything! The only problem was a flimsy shower attachment that wasn't fitted onto the wall properly.
     
    hash tag likes this.
  6. Teaboy

    Teaboy It definitely looks brighter over there..

    Ours was built in 2000 and we never bothered with a survey. That being said I do work in construction but even so, unless the thing was built by somebody who somehow managed to bypass all building regs, building control and pull the wool over the eyes of the insurer it'll be alright.
     
    Hellsbells likes this.
  7. hash tag

    hash tag Pedicabo omnes

    Again, I know nothing about the IoM. Here we have NHBC whereby the builder of the property has to correct defects. In the first three years every defect has to be put right from years 3 to 10, only major defects are covered.
    The cautions...I bought a new build many years ago, identical to my neighbour (who was a surveryor). I managed to find about 20 items for the builders to put right whereas he foung=d about 120. This of course depends or how pedantic you are and how far you can be bothered to push a point. It is very unlikely that as a second owner of a new build that you could get minor defects put right.
    The place where I live now is maybe 15 years old and there are very definitely defects which should have been put right but were not, like auto door closers which are a health and safety (fire risk) issue. We were in no position to insist they were put right nor were they mentioned in the lenders valuation.
    Buyer beware!
     
    mauvais likes this.
  8. mauvais

    mauvais change has become unavoidable

    Well, our prospective purchase was built in 1913. I didn't really know what things like Japanese knotweed were before I started on this journey. We're getting a building survey.
     
  9. hash tag

    hash tag Pedicabo omnes

    It is a huge expense, especially when you are already stretching yourselves, however a homebuyers report for a few hundred pounds will normally highlight most issues.
     
  10. Hellsbells

    Hellsbells World's best procrastinator

    hmmm I see what you're all saying about a homebuyer's report now. We just had (what I think) was the result of the bank's valuation which was a very rushed phone call from the Estate Agent saying the surveyor said it was a lovely house, no problems, can he send paperwork to our advocate now. IS THAT IT?! We paid £330 for that sentence! Or do we get a proper valuation report from the bank :confused:
     
  11. mauvais

    mauvais change has become unavoidable

    The bank's basic valuation is for their benefit only - to ensure that the house is actually sensible security against the amount of money they're lending you, i.e. that it can be sold on for similar money if you stop making repayments.
     
  12. Hellsbells

    Hellsbells World's best procrastinator

    So a phone call from the Estate Agent to say everything's fine is all I should expect?
     
  13. mauvais

    mauvais change has become unavoidable

    Probably? Not sure why it's not from the bank though.
     
  14. Teaboy

    Teaboy It definitely looks brighter over there..

    I think so. I can't remember ever hearing from the mortgage provider - most things go through the estate agent. You'll probably have to get used to spending a few hundred here and there for increasingly baffling reasons but that's home buying.

    We never got to see the survey conducted by the mortgage provider, as mauvais say's its for their benefit and is very cursory. Its really to make sure you haven't put a stupid bid in because you intend to commit a fraud or you're being ripped off.

    How old is the house?
     
  15. Hellsbells

    Hellsbells World's best procrastinator

    We were told it was built around the mid '90's.
     
  16. Teaboy

    Teaboy It definitely looks brighter over there..

    Yeah that's pretty modern and should be up to scratch. I guess there's an element of risk really, do you go for your own survey or trust your own instinct? I don't think I would bother with a survey in your position but you must do what's right for you.
     
    miss direct, hash tag and Hellsbells like this.
  17. 1927

    1927 Funnier than he thinks he is.

    Do you still have to pay the insurance premium for the mortgage company , cant remember what its called but it was a fair bit of money, about £700 iirc, its something to do with insuring the difference between 70% of value of house and the amount they've lent!
     
  18. hash tag

    hash tag Pedicabo omnes

    Sometimes it is necessary to be pedantic....its not a survey, it is a mortgage valuation. Is the property worth £100,000 or whatever. Are there any issues which may effect the resale or buildings insurance and how much should it be insured for. It cannot and must not be relied upon to guarantee the Condition of the property. The insurance of £700 which 1927 refers to is probably a mortgage indemnity guarantee premium (see earlier post).
    a homebuyers report used to be a detailed 6 page report, which covers virtually everything for a few hundred pounds.
    a full structural survey is a very detailed survey, full of jargon, costing about a grand. It will cover specifics like movement, cracks and the like.
    a limited structural engineers report normally a single thing. Just movement or type of construction, or tie bars or roof, only normally necessary if you or the valuer spot something which causes a little doubt like signs of subsidence or heave.
     
  19. Teaboy

    Teaboy It definitely looks brighter over there..

    To be fair to you there may be times when it is necessary to be pedantic. This, however, was not one of them.
     
  20. hash tag

    hash tag Pedicabo omnes

    The difference between a mortgage valuation and a survey is very important for the reasons I tried to explain. Apologies if it wasn't clear enough.
     
  21. Teaboy

    Teaboy It definitely looks brighter over there..

    For the purposes of buying a house everybody knows and its already been explained on this thread anyway, several times.

    By the way I'm an engineering specialist in the construction industry, but thanks for the mansplaining anyway dad. :D
     
  22. Supine

    Supine Rough Like Badger

    I always put in an offer subject to survey and then nock the price down to reflect things that need to be rectified if they're significant.

    Last house needed roof work doing so I got 4k knocked of the price and never did the work. I just sold it to somebody who didn't bother getting a survey done :D
     
  23. hash tag

    hash tag Pedicabo omnes

    Hi Hellsbells Just popped back to see how things are going.
     
  24. Hellsbells

    Hellsbells World's best procrastinator

    Things seem to be moving forward ok so far thanks :) We've had our formal mortgage offer from the bank plus a copy of the valuation report and our 'advocate' (well, her secretary anyway) has started on the searches. Been trying to find out the chain situation - so far I know the vendors have purchased a property but don't know beyond that yet.... I think that's the only thing that'll hold us up.

    The house we're buying (have bought?) is literally 10 houses up from where we live at the moment. I pass it several times a day & think oh my god that house is MINE, I actually own that house :D
     
  25. hash tag

    hash tag Pedicabo omnes

    Hope it's going well for you.
     
    Hellsbells likes this.
  26. diond

    diond Well-Known Member

    I bought for the first time last year and feel your 'pain'. Even though there was no chain on either side, the process still took between 10 to 12 weeks. I watched a housing programme the other week set in Canada and it appears that it's not unusual for their buying and selling process to take no more than two to three weeks in total.
     
  27. Idaho

    Idaho blah blah blah

    Buying for the first time is a dream compared to being in a chain. I've had it take years.
     
  28. Hellsbells

    Hellsbells World's best procrastinator

    Keep getting calls from the Estate Agent now. Apparently the vendors have been asking when we want to complete and move in. I gave an ideal date of mid April at the latest .... Estate Agent seemed to be certain everything would be sorted by mid March... :hmm: It's in the solicitor's hands now though and the companies providing the search results, so not sure how the Estate Agent can be so certain about such a short time scale (of, like, 2 weeks!!) He recommended I get on the phone asap and start chasing the solicitor. I really don't want to do this yet - they only sent off for the searches a few days ago.
     
    miss direct likes this.
  29. Idaho

    Idaho blah blah blah

    Estate agents are utter wankers. They have one job and always botch it. And they seem incapable of learning from experience in regards to how every sale inevitably takes ages.
     
    ddraig, kabbes and Leafster like this.
  30. Leafster

    Leafster Nurturing green fingers

    This, definitely! Once my offer was agreed, the Estate Agents sent me a document which stated I had to have the survey done within one week and setting out what my solicitor could and couldn't ask! When I complained that their timetable was unreasonable and they couldn't restrict the questions my solicitor could ask, they told me it was "standard practice". They were quite stroppy about it. It was only when I threatened to report them to their trade organisation for a breach of their code of conduct that they backed down.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice