Declined mortgage

[auntsallyann]

I was accepted for a buy to let re-mortgage, had the valuation done, but because the valuer had marked the property as poor for demand and future saleability they are now refusing to give me the mortgage. I have asked if they would reconsider as I have now had the property decorated and carpeted throughout. i explained to them that the property was in poor condition as it had not been lived in for 3 years and it was full of junk, dust and peeling wallpaper when the valuer came. Now it has been cleaned throughout it looks totally transformed and it is genuinly a lovely property, with upvc d/g and a very nice kitchen and bathroom. I have to admit when the valuer came it was a bomb site! With hindsite I should of wated until the house was empty and cleaned before he came. But the lender is saying because it has been keyed onto the system they will not accept a new valuation.Is there anything i can do to appeal the lenders decision.

[annie0000]

Valuers are used to looking at the potential within a property, was he aware that you were in the process of doing it up? he may have been well aware, but still didn't think that it had good resale prospects.

mortgages are just so much harder to come by now and lenders are being increasingly cautious. It may be worth contacting the valuer to see if he had taking into account the state of the property at the time of the valuation. Many lenders will only use a particular group of valuers, so they may not be interested in a 2nd opinion, but it may be worth asking them, or simply shopping around to see if you can get a mortgage elsewhere.

[auntsallyann]

hi annie i wasnt there when the val went round i friend of mine was and she told him i was doing it up but he just said that was not for his concern, can i contact the valuer myself and explain they have declined the mortgage?

[annie0000]

I would contact them, but not fly straight in with the declined mortgage stort - I would initially ask whether he valued the house as it was or whether now it was done up whether there was scope for re-assesment. You could ask him what he based his scoring on in terms of saleability and see if there is any room for manouver with the assessment.

If all else fails then by all means let him know why you are asking.

[R1Geezer]

I'm confused here, how did you get access to do the place up if you hadn't even bought it?

Any way you can start the whole process again with a different lender but as above the valuer would take into account poor decor etc. He'll be looking at other factors when deciding things like rental demand and saleability.

[auntsallyann]

i have a residenial mtg on prop now but need a buy to let as i have moved out and want to let it. the report says value in present condition �130k value after any essential repairs �130k so i don't understand why they have declined it, the prop is in a popular location for both sales and lettings.

[annie0000]

The problem with R1Geezers solution is that you will probably have to declare that you have already been declined a mortgage on your application and in the current climate, you will probably find that no-one will evlse will consider it on that basis. I could obviously be completely wrong, but I think that you would be better off persuing this with your existing lender as you already have a history of good payment with them. Did you have to pay for the valuation? If yes, then you may end up paying it again with another lender.