Engineers Report & Mortgage Draw Down

Goldenlady

I am due to close out on the house that i am buying next week., its built circa 1960's, engineers report highlighted a few issues nothing major just stuff that would come with an old house.. all going fine, contracts signed by both parties, i am now in a legal and binding contract according to my solicitor... so today when I emailed the bank to advise my solicitor will draw down monday, they came back saying that the under writers are still reviewing the engineers report. I asked if I should be concerned and they said that its safer this way as if there were any issues it could cost money in years to come etc. So i am a bit freaked out now, firstly i never knew i had to send the report to the bank and now this stalling on drawn down... is there a possibility they could not give me the mortgage at this stage? I have paid the full deposit etc...so concerned i may lose all my money as im in a legal contract!!! Help!

MarkAnthony

How did your solicitor let this happen?

Yes there is a very real potential (probably, hopefully a very small one) that a mortgage could be refused/reduced or work ordered to be carried out prior to draw-down. (dunno if that still happens did back in the day in the UK)

This should have been dealt with before signing contracts. Is there a loan clause in the contracts e.g. is the deposit recoverable if the mortgage is refused? Potentially your solicitor has covered your and his/her arse transparently.

ted1

Since when do banks look for engineers reports?
Normally they want a valuation from an estate agent who doesn't know a breeze block from a door stop

maryjayne

Happened to me recently, had to submit surveyor's report to them. They came back and said underwriters wanted quotes for essential work listed in report.

TheDriver

My bank never looked for that report. Maybe age of house and history of area made them check it.

Idioteque

There's a fairly standard line in the contracts that solicitors put in that basically says if you can't draw down the mortgage for whatever reason, you can walk away....I'd be pretty surprised if your solicitor didn't have this in.

Goldenlady

Thanks guys. Bank never mentioned needing the engineers report until I had the valuation done, although value is what was agreed. I'm hoping my solicitor has me covered. So annoyed with the bank, hopefully it's only a last minute hurdle. My dads a builder & spoke with engineer at time report was issued & yes there are a few minor items but nothing major according to my dad.

Jen44

Just read your small print carefully, according to our solicitor KBC are the only bank that actually have written into their loan offers that they can still refuse mortgage after contracts signing therefore you would loose your 10% deposit. I know it is something our solicitor was very wary of right up till the end.

Goldenlady

Jen44 wrote: »

Just read your small print carefully, according to our solicitor KBC are the only bank that actually have written into their loan offers that they can still refuse mortgage after contracts signing therefore you would loose your 10% deposit. I know it is something our solicitor was very wary of right up till the end.

Thanks jen44. I'll have to look at that. My solicitor rang the bank & they are saying the under writers want to speak directly with the engineer. Due to close out tomorrow, am really concerned about this. I've to move out of my apartment by end of month so could end up with no home! It's a disaster!

Jen44

sounds like it might just be a formality if your due to close tomorrow! Did your engineer seem overly concerned about anything? So long as there are no major issues like dry rot or structural stuff you should be ok. The house we bought was built in the 60's too but the issues were more along the line of re wiring asbestos roofs on a shed and one gutter etc.

Goldenlady

Thanks Jen44... it seems the bank just wanted him to state it was structurally ok and habitable! Still waiting for him to send the letter so whole thing is delayed.... but hopefully that will resolve it.

edanto

Hang in there, the process takes WAY longer than expected but all you can do is keep ringing the people every day, firing off the email and generally getting busy people to do the work for your deal.