WWYD - Lender refused to lend on a property

[Wddre]

Planned to port our existing mortgage onto a new property but just found out that our lender has refused to lend on it. Apparently they found some minor damp - the vendor has had his own survey done and says they came back with 1k worth of works. What would you do? Part of me thinks that we should just go with a different lender and see whether they agree to lend on the flat, part of me thinks we should walk away. If it makes any difference - we are buying a large two bed fairly expensive flat. Our estate agent said maybe lenders are nervous about lending on expensive flats - although we have quite a large deposit so wouldn't think that would be a problem. Havent seen our bank valuation report as apparently it's confidential. Anyone been in this situation? What would you do?

This sounds utterly bizarre.

Are you sure it's not more to do with the ground rent/maintenance/length of lease?

I'd go to another lender.

Find another lender.

I just had to get a damp survey before they’d offer me the mortgage. Came back needing £2k of work and they didn’t care as long as I’d had the survey. No rhyme or reason to it.

Completely refused to lend, or refused to lend unless you got the required works done?

We had that - lender refused to lend the full amount and would only release the last £1k when they had proof the (also damp) works had been carried out. In practice, our seller got them carried out.

@hettiethehare in our case, they just refused to lend. But they've also been really dismissing of the whole thing and not even released the full report.

If you are porting your existing mortgage, look at the rate. To go to a different lender will cost you lots more!

I wouldn't buy where a lender refuses because you may be stuck if you ever need to sell. Even if it doesn't make much sense.

Does the block have cladding?

Also to add. The Valuer and lender will take lots of things into account when assessing the "Risk".

It could be lease, increasing ground rent or over exposure (for them) in that particular block. If you opted for a mortgage valuation you may not get to see the report as it is carried out on behalf of the lender.

Thank you. We decided not to proceed with the flat. Differences in rates with a new lender are just too high. Now off to find something else.