Mortgages

[Bozza]

Wait and see what the mortgage approvals are in May and following months. This reduction will feed through to the market with a dampening effect.

There may be an initial dip if, for no other reason, than all parties involved need to get familiar with the new processes brought into play.

Regardless, if there is a bigger dampening caused by greater diligence being applied to lending, then I'm not sure anyone can claim that's a bad thing. You yourself US are predicting rate rises and it can only be right that those taking out new mortgages are believed to be able to cope with that when it comes.

All that said, my new mortgage, being taken out through an IFA similar to yourself, seemed to be a complete breeze. I don't think I was asked any more than I have been prior to these changes.

 

[Uncle Spielberg]

There may be an initial dip if, for no other reason, than all parties involved need to get familiar with the new processes brought into play.

Regardless, if there is a bigger dampening caused by greater diligence being applied to lending, then I'm not sure anyone can claim that's a bad thing. You yourself US are predicting rate rises and it can only be right that those taking out new mortgages are believed to be able to cope with that when it comes.

All that said, my new mortgage, being taken out through an IFA similar to yourself, seemed to be a complete breeze. I don't think I was asked any more than I have been prior to these changes.

The rules make sense, some lenders are applying them with zeal and may lock out people perfectly able to keep on top of the mortgage payments. We will see.

 

[Westdene Seagull]

The rules make sense, some lenders are applying them with zeal and may lock out people perfectly able to keep on top of the mortgage payments. We will see.

Out of interest, do the new rules apply to re-mortgages ? I ask as surely that could prevent people who have managed to pay their mortgage previously being able to switch from SVR to a fixed rate.

 

[Uncle Spielberg]

Out of interest, do the new rules apply to re-mortgages ? I ask as surely that could prevent people who have managed to pay their mortgage previously being able to switch from SVR to a fixed rate.

Re Mortgages to a new lender yes, a product switch with the same lender, no.

 

[Bozza]

Coincidental timing: just had a call from our mortgage man. The surveyor has valued our purchase at about 85% of the agreed sale price, which affects the lending obviously.


With the market having run so hot over the last few months, I guess a bit of this has been going on. Do buyers typically go back and seek to renegotiate on the sale price?

 

[Springal]

Coincidental timing: just had a call from our mortgage man. The surveyor has valued our purchase at about 85% of the agreed sale price, which affects the lending obviously.


With the market having run so hot over the last few months, I guess a bit of this has been going on. Do buyers typically go back and seek to renegotiate on the sale price?

My mate was in a similar situation, house was up for £142,500, mortgage company valued at £140k. He refused to budge, buyer couldn't find the other £2.5k, so pulled out. He put it back on the market, got another offer, the SAME person surveyed the house about 4 weeks later, and approved it at £142,500....

 

[Uncle Spielberg]

Coincidental timing: just had a call from our mortgage man. The surveyor has valued our purchase at about 85% of the agreed sale price, which affects the lending obviously.


With the market having run so hot over the last few months, I guess a bit of this has been going on. Do buyers typically go back and seek to renegotiate on the sale price?

Renegotiate. Vendor will have same issue with other lenders , surveyors and only avoid it with a cash buyer.

 

[Bozza]

They clearly won't go down to the 85% point - should we aim to split the difference?

 

[Uncle Spielberg]

They clearly won't go down to the 85% point - should we aim to split the difference?

Depends how much you like it. The professional says you are paying over the odds for it. I would put surveyors valuation to them first and see what they say.

 

[surrey jim]

Interesting.
Is he cheap?

Taking aside the 118 Maureen jokes...


The cost in which I paid worked out great value for the service he provided. Taking into consideration his fee I still worked out to be saving a large ammount monthly.

 

[Westdene Seagull]

Coincidental timing: just had a call from our mortgage man. The surveyor has valued our purchase at about 85% of the agreed sale price, which affects the lending obviously.


With the market having run so hot over the last few months, I guess a bit of this has been going on. Do buyers typically go back and seek to renegotiate on the sale price?

My brother had the same problem - he paid £400 to get an independent surveyor report and they valued it at considerably higher. After lots of arguments the mortgage company backed down and accepted the independent valuation.

 

[Uncle Spielberg]

My brother had the same problem - he paid £400 to get an independent surveyor report and they valued it at considerably higher. After lots of arguments the mortgage company backed down and accepted the independent valuation.

This is very rare to be honest. They have redress against their appointed surveyor but not an independent one. Hence lenders appointed surveyors tend to be cautious as they don't want to be sued for over valuing a property if it goes tits up.

 

[Bozza]

This is very rare to be honest. They have redress against their appointed surveyor but not an independent one. Hence lenders appointed surveyors tend to be cautious as they don't want to be sued for over valuing a property if it goes tits up.

Our mortgage chap said appeals are possible but involve finding three similar recent sales in the same area and using that as a case for the value of the place we are buying. There have been no recent sales in the area and the house is quite non-standard so it would be difficult to find comparable properties. He suggested successful appeals are rare.

 

[Uncle Spielberg]

Our mortgage chap said appeals are possible but involve finding three similar recent sales in the same area and using that as a case for the value of the place we are buying. There have been no recent sales in the area and the house is quite non-standard so it would be difficult to find comparable properties. He suggested successful appeals are rare.

he is right.

 

[Herr Tubthumper]

Depends how much you like it. The professional says you are paying over the odds for it. I would put surveyors valuation to them first and see what they say.

I think I'd look at the land register and see how much recent sales have gone for. You can get a feel for the price this way. If it looks over-priced I'd go back to the seller. If the valuation looks under I'd go back to the lender.

Edit: just seen your reply Bozza.

 

[Uncle Spielberg]

Zoopla will tell you all the sales in the street over the last 5 years and what they sold for.

 

[Bozza]

Zoopla will tell you all the sales in the street over the last 5 years and what they sold for.

When we were going through looking at properties, the Zoopla valuation of places was generally way under asking prices.

Curiously the Zoopla valuation for the place we are buying is bang on the agreed sale price.

 

[Uncle Spielberg]

When we were going through looking at properties, the Zoopla valuation of places was generally way under asking prices.

Curiously the Zoopla valuation for the place we are buying is bang on the agreed sale price.

The show last 5 years sales and average for the postcode. Good luck.

 

[Herr Tubthumper]

Rates will rise at some point I am sure but it could be 15-20 years before we go back to a "normal" rate of around 400 bps

Rates will go up but I think it will be a long long time before there is any significant shift or if the government get shot of Mark Carney. It's interesting that every time there is rumour of a rise Carney pours cold water on the speculation: first is was his three rules, then he said the three rules could be met but a rise would only happen if the economy could still handle it, then he made the noises about other tools to dampen the housing bubble. I would not be suprised if we are still only at 1% in 5 years time.

 

[Westdene Seagull]

This is very rare to be honest. They have redress against their appointed surveyor but not an independent one. Hence lenders appointed surveyors tend to be cautious as they don't want to be sued for over valuing a property if it goes tits up.

Oh agreed - I was surprised they backed own. It does seem wrong that a single persons word is so powerful it can stop you in your tracks. My brother even tried complaining about the survey but the lender wouldn't hear a bad word said about their surveyor.