Mortgage issue, Underwriter says house isn't worth the money

thehamo

Hi folks, I was just wondering if anyone could shed some light on this situation. Basically we were told that we could get a mortgage of 200,000 or 90% which ever was cheaper. We have seen a house and used it as the address to apply for the mortgage. The house needs to be done up so had a bit of money left over to do the works. However, the bank rang and said the underwriter says that the property would only qulaify for 83% of a mortgage, regardless of how much we are going to pay for it. This was never communicated to us, and leaves us in a position now that we can buy the house, but cant afford to do it up. Its the first time ive ever heard anyone saying this about an 83% mortgage. cant quite get my head around it. Its with BOI, do we have any recourse, or should we just look else where? Do other banks work off this policy as well?

Many thanks.

Henry Ford III

They may be doing you a favour. You should either be buying that property cheaper, or be looking elsewhere.