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Mortgage refusal

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Hi All, I’d appreciate your advice. My buy- to- let mortgage  has just been refused on a very  awkward reason:

 the valuer has not recommended the property to lend on due to it being unlikely to sell within 6 months due to a lack of demand for the property in that area


The property is one bedroom flat in London , Woolwich SE18. Has anyone come across of it?

Many Thanks

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Hi msmaga

Happening quite often these days, especially in London due to current market conditions, political uncertainty, and given the number of new builds in Woolwich, the increased supply against demand.

Are you applying through a broker or yourself? If the latter, then might be worthwhile chatting to a broker that's whole of market to see if they can assist.

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That is an annoying decline, not much you can do about it. It's just down to the valuers opinion.

You should work with your mortgage broker to apply to a lender with a different Survey Company, with a view to see if there is a different outcome. Its sometimes wise to go for a "free valuation" mortgage product on the 2nd try just in-case.

The comment means it would be hard to sell. Lenders on "hard to sell" properties are often relieved of that pressure at Lower Loan to Value. They therefore being aware there is more equity in the property, so if they had to repossess and sell the property. There mortgage is likely to be covered even if they have to lower purchase price to get a bite.

The other way to see it - is to take this to the Vendor. Tell them that the property is unmortgageable, to see if you can get a further discount. That if you buy it from them you would be stuck with a unmortgageable property.

:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.

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Hi msmaga,

Check with your new broker before doing another application. Ask them this:

"Will submitting another application on this property effect or alter my credit score?"

"In the eyes of lenders I am fishing for credit"?

"If I submit another application and it comes back with the same negitive result, would this effect my credit score even more"?

It is better to be aware of all the factors and influences applying for lending can have.

Just because you dont like the result of a survey, doesnt mean you can ignore it and keep trying indefinitely to gain finance.

Hope this helps


Conrad Paton

+44 7957 959851




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