Old wiring and mortgages?

[sianihedgehog]

I'm interested in a house which DEFINITELY needs rewiring. How likely is it that my mortgage application would be turned down on this basis? How likely is it that they'd put a retention on it, and how much would it be likely to be?

Some background: the house is a 3 bed mid terraced house built about 1905 in the southeast, in a town where the market is currently red hot. It's cheap for the area, and in need of renovation. We're first time buyers, and will be applying for a 90% mortgage. We currently have a mortgage promise from Halifax for considerably more than the purchase price would be, but we're limited by our deposit.

We're buying a house that needs complete rewiring, the mortgage company are not interested in the slightest.

That's reassuring CarcerDun! Do you mind me asking how obvious the need for rewiring is? I ask because this one has one of the old dolly switches and at least three kinds of socket, which is making me think that it might actually be too bad for them to ignore...

They probably won't care and even if they do they will give you a timescale to get the work completed that forms part of the mortgage conditions. Like a year which is what we had on ours. However they didn't ever check the work had been done!

Ivytheterrible That's also reassuring, thanks!! Did they retain anything during that time, or just tell you it had to be done?

They shouldn't be interested as it's a residential mortgage. BTL would be a different matter as it could hold up rental income.

It could impact on a valuation but as long as you're paying a sensible price the valuation should be in line with that.

We bought a 1930s house with original wiring. Mortgage company never even asked. shame they didn't because the electrical report we had done didn't highlight the extent to which the house was a death trap

Thanks guys, very reassuring!! I'm hoping we'll be left with enough available funds or able to beg and borrow enough to get someone in to rewire before we move in, but getting a retainer put on the mortgage could scupper that idea.

Nothing retained by them it was just noted on the mortgage but as I said no one ever checked so there was no comeback.

This issue has just come up with the house we're buying and in our case the lender has made it a condition of the offer that the electrics be upgraded first (original dolly switches too in this case).

I doubt if they will care. Our house was like this.

I would definitely recommend getting it done before you move in. It is beyond messy!

They didn't care about ours either. Get it done before you move your furniture (and yourselves in). Ours took a week to complete with a 4 bed terrace and detached garage.

Janeyspamey have they held anything back, or is it just a condition on the offer that you will get it done between completion and moving in?

Mortgage lender is not prepared to offer until full rewiring had been completed and they have re inspected the house. Our understanding is that once they've checked property again and if satisfied they will lend us the whole amount

Eek. That's basically my worst nightmare - the house would just go to the inevitable cash buyer next in line and I'd lose all my costs. :/

Hi Sian, I guess that could happen. However in our case it's meant that vendor has got work done so saving us the trouble and cost later. I guess it helped that he'd had an open day and only one other offer so not really any other prospective purchasers lining up..

Well, I can keep my fingers crossed! The market here is just utterly insane at the minute, everything we've offered on has gone way over asking price. :/