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I have posted something on this previously but would appreciate some advice.
I recently been trying to get a mortgage and had it rejected due to the house having a timber frame with HSBC which is quite harsh in my opinion as I have bought a similar house just last year with the same timber frame.Now I am trying to see if any other mortgage company would possibly do a mortgage valuation. I have come across Natwest and the only issue is I have to pay upfront for the valuation which was not the case with HSBC. Also if it fails the valuation, then I lose out on the money.Any advice or what be the best next steps to take? Is there any other mortgage companies similar to HSBC who do not charge upfront for mortgage valuation
In my experience banks are much more stringent than building societies when it comes to interpreting the survey and unrealistic when it comes to buy to let. I won't deal with Barclays after they refused a remortgage on one of my properties due to a trivial issue that would have cost £450 to fix and the council said was not legally required. I recommend you go to a broker and explain the issue. They usually know which landers to avoid.
Are you looking for a purchase mortgage or a remortgage? And is the house a HMO, buy to let or Resi? Many lenders will offer a free valuation on a remortgage, less so on a purchase and even less on an HMO. Most lenders will also allow your broker to send across the property detail ahead of application to show the build type to get a pre-underwriting feel for possible acceptance. It is also likely that they may say they can accept 'subject to valuers comments' which is no guarantee unfortunately.
Ask your broker to look for deals with free or refunded valuations, or to call and have an open conversation about the property, even send over details ahead of application for their approval.
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I'd be happy to look at this for you. We have lenders that offer val free products; they charge an admin fee of £100-£150, so that's what you are risking, but I'd get a definitive answer before spending even that.
This is a tricky one as I have done a quick search for HSBC’s ‘problem’ with timber frame and the only definitive decline is for timber frame properties built between 1920 and 1965 (poor vapour barriers apparently) – but I do not know if that applies to your instance.
That said the problem of the valuation is not easily solved. What some lenders will allow is for the adviser/broker to contact the actual valuer to ask them about a property prior to the valuer actually going out to the property – the point at which the fee is non-refundable in most cases. I have also looked into NatWest’s criteria and unless cavity wall insulation was installed during original construction they might well have an issue. SO my advice would be to enquire of whomever you are submitting your application through to check with the valuer first. Be prepared with property details, photos and anything you can get to help the valuer give an up-front decision regarding the construction.
The valuation figure itself is not something you can control and if the construction is approved then this is the last hurdle. It is only a real issue if your proposed mortgage amount is close to a ‘loan to value’ (LTV) threshold such that if the property is down valued then (unless taking the LTV above 90%/95%) they still approve the mortgage but apply a higher interest rate. But down valuations are relatively rare on purchases due to open market forces usually getting a fair price rather than for remortgages where owner’s opinions can be inflating what they think their property is actually worth – causing quite a few down valuations at present.
If I were you I would get a list of the lenders and products I wanted in order of what they will cost over the initial product term and then start calling them to see if they will accept the property initially – with the local valuer’s help if possible. If you are confident the property is worth what you are paying then in order to get the best deal you may have to pay for the valuation but knowing that you feel a down valuation is unlikely – but possible – it is a risk but unless the purchase price is north of £750k it should be only a few hundred pounds rather than £1k+.
I hope this helps a little – good luck,
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Trouble is it's classed as non standard construction. We've just been through this on a purchase we were making and spoke to loads of brokers and final conclusion was Don't do it. A Mortgage underwriter actualy said if you haven't committed yet pull out now as you're taking a huge gamble that probably won't pay off.