Help surveyor has recommended not to lend on property

[Lynne Auld]

Hi, I am trying to buy my council house, have gone through a mortgage broker. I had my offer in principle from HBOS and things were going according to plan until the survey. Apparently lender normally uses D M Hall or Sheppards but were so busy, another surveyor was used who has stated the building is a non conventional building therefore they would not recommend on it.
I have comparables of people I the exact same property including my building who have mortgages with HBOS but surveys were done by the other two companies.
this does not seem fair, do I have any redress. They won't budge according to me broker and won't send out another surveyor........ help!
Should I try another lender or seemingly the council need to give me a mortgage if I cannot get one on the high street. Is this correct?
thanks in anticipation,
Lynne

[PlanB]

Re: Help surveyor has recommended not to lend on property

Was the surveyor Colleys by any chance? I have a reason for asking this question.

Could you also explain what the surveyor meant by "non-conventional". Is it built of something other than brick walls and a tiled roof? Something which is not acceptable to HBOS may be fine with another lender. Chelsea Building Society would never lend on basement flats, and I had to try numerous lenders before I could get a mortgage on my thatch cottage.

The lender would have known the construction of your property before instructing the surveyor because those details are entered on the loan application form. Your broker should have cross-checked the criteria with the lender's policy then. If it's not the type they lend on then you should have been told at that point so as not to waste your money paying for their surveyor. I would ask for a refund of the fee.

Lenders change their mortgage criteria all the time so the fact that your neighbours have mortgages with HBOS on similar properties may be because things have changed since they got clearance for theirs.

[PlanB]

Re: Help surveyor has recommended not to lend on property

Here's a link to the HBOS website for intermediaries (i.e. brokers) which lists their mortgage lending criteria. There's a list of the various types of property which they will accept for mortgage purposes. If you click on *property* and then scroll down and look under *unusual properties* it seems very few constructions are excluded (sorry there's no direct link to that page ). Maybe you can challenge the surveyor's view:

http://www.halifax-intermediaries.co...e/default.aspx

[Lynne Auld]

Re: Help surveyor has recommended not to lend on property

Was the surveyor Colleys by any chance? I have a reason for asking this question.

Could you also explain what the surveyor meant by "non-conventional". Is it built of something other than brick walls and a tiled roof? Something which is not acceptable to HBOS may be fine with another lender. Chelsea Building Society would never lend on basement flats, and I had to try numerous lenders before I could get a mortgage on my thatch cottage.

The lender would have known the construction of your property before instructing the surveyor because those details are entered on the loan application form. Your broker should have cross-checked the criteria with the lender's policy then. If it's not the type they lend on then you should have been told at that point so as not to waste your money paying for their surveyor. I would ask for a refund of the fee.

Lenders change their mortgage criteria all the time so the fact that your neighbours have mortgages with HBOS on similar properties may be because things have changed since they got clearance for theirs.[/QUOTE]

[Lynne Auld]

Re: Help surveyor has recommended not to lend on property

No it was Murray Muir in Glasgow and because it it 7 stories high and cladded, can't understand it though they are being bought and sold all the time. I was told the council are duty bound to lend if I can't get a mortgage on the high street. Is this true?

[PlanB]

Re: Help surveyor has recommended not to lend on property

No it was Murray Muir in Glasgow and because it it 7 stories high and cladded, can't understand it though they are being bought and sold all the time. I was told the council are duty bound to lend if I can't get a mortgage on the high street. Is this true?

The number of storeys should not be a problem (see my last post on HBOS criteria). I'll look into the obligations of your Local Authority to provide finance for you to buy the property since you are in Scotland which may differ from the rest of the UK. I'll be back when I've done some research for you

[enquirer]

Re: Help surveyor has recommended not to lend on property

I had my offer in principle from HBOS ...

A 'mortgage in principle' is worthless. It's 'talks about talks', that's all.

Should I try another lender ...

Yes.

[des8]

Re: Help surveyor has recommended not to lend on property

....and another broker?

[PlanB]

Re: Help surveyor has recommended not to lend on property

If you change mortgage brokers you run the risk of having more credit checks carried out by the next one. Too many searches on your Credit Reference Agency file sends out the signal that you are either applying for multiple credit or you're being refused credit (and having to apply again elsewhere) which will be a negative when it comes to credit scoring as each search leaves a footprint on your file. Most brokers have the ability to use the original search again. If you switch brokers that can't happen

[des8]

Re: Help surveyor has recommended not to lend on property

Do brokers carry out credit checks? that surely is the function of the lender, and I don't anticipate lenders trusting a brokers credit report on a would be borrower as the broker acts on behalf of the borrower.
This particular broker hasn't been very active and I would consider finding someone else.

An "offer in principle" by a lender is a good indication they have not done a credit check. It just means that working on the assumption that the information you have given them is correct and checks out , they would be prepared, depending on the property, to lend you a particular sum.

[PlanB]

Re: Help surveyor has recommended not to lend on property

Do brokers carry out credit checks? that surely is the function of the lender, and I don't anticipate lenders trusting a brokers credit report on a would be borrower as the broker acts on behalf of the borrower.
This particular broker hasn't been very active and I would consider finding someone else.

An "offer in principle" by a lender is a good indication they have not done a credit check. It just means that working on the assumption that the information you have given them is correct and checks out , they would be prepared, depending on the property, to lend you a particular sum.

Independent mortgage advisors (aka brokers) arrange the "offer in principle" which is more commonly known as a "Decision in Principle". This gives their client a clean bill of financial health based on a credit check with either Experian or Equifax credit reference agency and that triggers the budget (financial ceiling) on which the lender is prepared to offer a mortgage subject to survey. The borrower then goes and finds a property to match the budget. You cannot get an offer in principle without a credit check.

Here's a better explanation from the Nationwide's website for intermediaries (brokers):

https://portal.nationet.com/nationwi...6#para-content

[des8]

Re: Help surveyor has recommended not to lend on property

Thanks for the correction

[FlamingParrot]

Re: Help surveyor has recommended not to lend on property

The number of storeys should not be a problem (see my last post on HBOS criteria). I'll look into the obligations of your Local Authority to provide finance for you to buy the property since you are in Scotland which may differ from the rest of the UK. I'll be back when I've done some research for you

I remember some lenders having a policy of not lending on properties located in blocks with more than 7 floors (even when the flat was on a lower floor) and/or not lending on ex-council properties (even when the property was already privately owned). This was many years ago, things may well have changed since then. :noidea: