My partner and I are in the process of buying a house, and we applied to Tesco Bank for a mortgage. All has been going well until the valuation report came back. This requested that around £6,000 of work be undertaken on the property, prior to a decision to lend. The problem is it won’t put these conditions of the offer in writing, meaning that I have no leverage in discussions with the estate agent. It is leaving us in a catch-22 position as it won’t lend without the work being done, but won’t give me the evidence I need to prove to the agent this is the case. Nor will it allow me to negotiate the price down to cover the works. EB, London
Tesco Bank says that when it makes an “offer in principle” it is subject to a number of requirements, which include the condition of the property. “If these conditions are met we make a formal offer,” a spokesperson says. “However, in this case the property didn’t meet the requirements and therefore an offer could not be issued.”
It is, therefore, turning you down, which is why it won’t write that letter, although it took media intervention for it to spell that out to you.
It seems odd for the bank to demur over such a small sum. It says the valuation report has been made available to you so you could show that to the agent to galvanise the vendor into doing the works, while you approach a new lender.
If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.
