Mortgage refusal

milgo

milgo

milgo

Associate
Joined
21 Aug 2003
Posts
651
Location
Essex
I am about 2 weeks into buying my first place and got the report from the mortgage company today on the inspection.

To my surprise they refused to lend because "There is high voltage electrical supply equipment associated with the proximal main line train lines. The possible effects of electromagnetic fields have been the subject of media coverage. The HPA has advised that there may be a risk, in specified circumstances, to the health of certain categories of people. Public perception may, therefore affect marketability and future value of the property." Although on the form the surveyor has said it is a suitable security for mortgage purposes.

The property is a 2 bed flat in a converted (1997) pre-war ball bearing factory about half a mile away from the overground train station. There has recently been a massive development literally right next to the train line though and it seems they all sold without a problem.

The estate agent laughed at the report and said "I would be amazed if they wouldn't amend that". Even though he is a nice guy at the end of the day he is just a sales man, so I am not really listening to what he says.

I'm going to speak with the mortgage company on monday to get some more information, but what do you guys think? Ever heard of or experienced something like this? Is the mortgage company just being very twitchy in the current climate? Should I just forget about it and move on?
 
They will suffer it in the end and lend you the money, but remember someone will one day be buying it from you, unless its just perfect buy somewhere without a problem.
 
Yep that's what i'm concerned about DM. I'm not worried about the radiation at all, there are loads of offices and houses in the area.

I'm confident I got it for a good price etc. It's in a good location for me and 30 minutes into London zone 1 by train means it should be easy to get a lodger.

If they don't re-asses it I will pull out and I wont accept a higher rate. You had that done to you Castiel?

I think they are worried about lending on flats at the moment. With all the new developments they are concerned flats will drop in value as the market becomes saturated. And with only 10% deposit i'm not in the best position.
 
Find another property. Why would you ignore what they're telling you? Sounds pretty genuine and anything that may affect your health or chances of selling, well, you'd do pretty well to take note.
 
WeOwnTheSky said:
Find another property. Why would you ignore what they're telling you? Sounds pretty genuine and anything that may affect your health or chances of selling, well, you'd do pretty well to take note.
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Perhaps, but he states the lines at half a mile away.... That would be most london property ruled out of purchase.mortgage if applied in the same manner. Makes no sence.
 
Hikari Kisugi said:
Perhaps, but he states the lines at half a mile away.... That would be most london property ruled out of purchase.mortgage if applied in the same manner. Makes no sence.
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My concern would in reselling the property in x number of years. If there's an issue now there could be an issue next time.

Unless you really want to buy this place I would take another look around and see what you can get, if you have the time.
 
Is there actually any evidence whatsoever that there is any risk to health, or is this some theoretical rubbish perpetuated by the media which it sounds like?
 
I was declined a mortgage by Nationwide on the basis that the extension was only single skin and therefore prone to damp, tried another lender, Halifax, and they didn't have a problem with it and I was accepted (didnt buy the house in the end though, and now have a mortgage with Nationwide).

So, maybe try another lender? probably incurr another survey fee though.
 
Energize said:
Is there actually any evidence whatsoever that there is any risk to health, or is this some theoretical rubbish perpetuated by the media which it sounds like?
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Typically the fall off from stuff like that is in the region of exponential - i.e. at 1 meter there might be moderate long term health concerns but even at say 10 meters insignificant (as an example) so while there may be some valid concerns if you lived right above a transformer (IIRC theres some evidence that low frequency EM fields can weaken the bodies immune system from prolonged exposure and hence make you more susceptible to health problems) then it could be a potential problem but half a mile is a whole different story.

I used to live about a quarter of a mile from one of those lines in London and there was no appreciable interference, etc. but some people living right by the station (under 50 yards) did get some effects i.e. CRT TV/monitors would sometimes distort for a moment, or you'd get a click on landlines/audio equipment when trains went past... pretty sure tho you'd need that going on constantly for hours at a time for any real health concerns tho.
 
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Energize said:
Is there actually any evidence whatsoever that there is any risk to health, or is this some theoretical rubbish perpetuated by the media which it sounds like?
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There was a study that said children who live within a certain range of them in their first year of life are 70% more likely to get leukemia.
 
Thanks for the replies. A mixed bag really. All your posts reflect my concerns.

What it all comes down to is the surveyor saying that the future property price may be affected and the mortgage company are just focusing on that obviously. They aren't concerned with the health implications, just public opinion.

I am in no rush to move, but i'm getting fed up living with my dad now at 24, especially as I was renting for a couple of years and got used to doing my own thing.
 
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