Secured Loan - Refusal based upon valuation

Apr 10, 2006 1 Replies

Hi All



I recently went for a secured loan through a broker. The loan was approved and underwritten successfully and they sent me a copy of the credit agreement, that they had signed and I duely signed and sent back.



They are now telling me I cannot have the loan because there is not enough equity in the property, as the LTV has been limited at 90%.



My questions are:


  1. If they have signed the agreement and I have signed the agreement, does this not mean that the agreement has already been executed and they are obliged to release the funds to me ?


  1. Have they been negligent in what has happened ? During the initial application, I informed them that outstanding balance on the mortgage together with the estimated value of the property.



Thanks for your help.



Jamie



No, because any loan is subject to valuation of the security address

No, as the valuation is performed by an expert third party which report back to the lender

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