Mortgage retention – tempting fate?!

Great news we have had our mortgage offer WOOHOO 🙂 sadly the bad news is that they have decided to put a retention on it 😦 Boo Hiss!

Was I tempting fate by saying the valuer hadn’t recommended a mortgage retention I wonder… Anyway the amount of the mortgage retention is £5,000 which I suppose in the scheme of what we are borrowing isn’t a horrendously huge amount, but still that 5k would be better spent immediately on the house. We are quite lucky in that we do have a budget put aside for the work we are going to do to the house so the 5k will have to come out of that to pay for the house.

The conditions of the mortgage are that we have to meet the 3 things on the valuers list within 6 months and they will release the 5k to us. All well and good except when you see that the 3 things listed are damp (okay that’s fair enough) and problems with the kitchen floor (again fair enough we knew about that needing attention) but number 3 is complete refurb inside and out which is a bit on the vague side if you ask me. After all everybody is going to have different ideas on complete refurb, I could take it to mean paint everything and make it look pretty and job is done, or I could think it means rewire, replumb, replaster, new kitchen, new bathroom, new windows….So we are seeking clarification on this point since the amount of work will pretty much decide whether we can get it done in the timeframe they are insisting on.

So should you be subject to a mortgage retention make absolutely sure you check the time frame you have to get the work done by to get the retained funds released. A nice little extra that they put in is that you have to pay upfront for the reinspection fee, so you get the mortgage, they charge you a handsome arrangement fee, and many other fees as well then because they decide against the valuers recommendation to put a mortgage retention on the mortgage offer then you have to pay more fees to get the money they’ve promised you. Of course if they didn’t reinspect you’d just say you’d done the work without actually doing it (or at least that’s how they think I suppose)

So with regard to the clarification of what we need to do for the funds to be released I rang and spoke with the mortgage company, the lady on the phone agreed it was a bit vague and open to interpretation. However she couldn’t just go and get clarification, she gave me a fax number and I had to get my financial adviser to fax them asking them for clarification, they then go back to the valuer, he will no doubt think about it for a few days before responding, they then report back to my adviser who reports back to me!!!! How incredibly long winded is that!

Anyway it’s the weekend and we have the mortgage offer so I don’t care I’m celebrating tonight 🙂


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