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WARNING: NATWEST mortgage problem
TDanger
Posts: 19 Forumite
I have an offer accepted on a new private build 3 bedroom end-terrace at £225,000.
NatWest pretty much bit our hand off with a 5yr fixed rate at 5.49 lending £187.
Mortgage application completed in their branch. Phoned last week to update - all gone through fine, only the valuation to complete.
They have since come back this morning claiming they will not lend more than 80% on a new build. Meaning they won't go higher than £180,000 and we need £187k to proceed.
When my fiancee who took the call asked why the advisor at the mortgage centre did not point this out during the application they claimed not to be able to locate that particular advisor!
If this is their policy then there isn't a lot we can do about it but what is so frustrating is we had two meetings with their mortgage advisor in branch and then carried out the application in branch over the phone to the mortgage centre and a no point was this ever hinted at.
The original adviser I spoke to in branch is on the case today trying to see what he can do as he had no knowledge of the 80% rule, nor can he find any mention of it. It certainly isn't mentioned on any of the literature or guidelines published.
They will be phoning me back later but I am not hopeful. Looks like we're back to square one. If need be I'll approach the agents to enquire about accepting a lower offer but that's very unlikely.
NatWest pretty much bit our hand off with a 5yr fixed rate at 5.49 lending £187.
Mortgage application completed in their branch. Phoned last week to update - all gone through fine, only the valuation to complete.
They have since come back this morning claiming they will not lend more than 80% on a new build. Meaning they won't go higher than £180,000 and we need £187k to proceed.
When my fiancee who took the call asked why the advisor at the mortgage centre did not point this out during the application they claimed not to be able to locate that particular advisor!
If this is their policy then there isn't a lot we can do about it but what is so frustrating is we had two meetings with their mortgage advisor in branch and then carried out the application in branch over the phone to the mortgage centre and a no point was this ever hinted at.
The original adviser I spoke to in branch is on the case today trying to see what he can do as he had no knowledge of the 80% rule, nor can he find any mention of it. It certainly isn't mentioned on any of the literature or guidelines published.
They will be phoning me back later but I am not hopeful. Looks like we're back to square one. If need be I'll approach the agents to enquire about accepting a lower offer but that's very unlikely.
0
Comments
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I think 80% LTV on NB properties is quite standard for most lenders ATM.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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From reading off this board over the last few months I thought 75% was the norm on NB0
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not a problem with Natwest mortgages but more of an issue with buying newbuilds."An arrogant and self-righteous Guardian reading tvv@t".
!!!!!! is all that about?0 -
we had a similar problem with both halifax and c&g - a few months ago most lenders changed their policy so that they will only lend 75/80% for new builds - however they failed to mention this to any of their staff, and so we only found out when our applications were refused. in the case of c&g, even the regional manager seemed surprised when she found this out! unfortunately, they won't budge on this so there isn't alot you can do, other than scraping together the extra cash, or persuading the builders to drop their price.2011 wins: £481Eleventh Heaven: 1 2 3 4 5 6 7 8 9 10 110
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This is such a kick in the teeth - I knew things were going too smoothly. I haven't the extra money to stretch to meeting the agreed price. It's crazy that this hasn't been raised until so far down the line - at least I haven't given the surveyor the go ahead yet.
Seems like a stupid question but if I could get the vendors to drop their price 5k would that make things viable to proceed or would NatWest recalculate to 80% of that making their maximum offer 176k.
I've been recommended a broker - what is the likelihood of being able to find a lender with a comparable rate (5.49 5 yr fixed) who would be willing to let £187?0 -
yes, will be 80% of actual purchase priceDebt free 4th April 2007.
New house. Bigger mortgage. MFWB after I have my buffer cash in place.0 -
They may only value it at £150k0
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You ask about £187......... what about your earnings etc?0
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From September I will be earning £32k and my soon to be wife £21k. However I currently earn £23.5k. I have £42k in savings and was intending to use £38 k towards the house and the remaining for fees, surveys, etc.
187 + 38 = 225 which is the offer that we have had accepted.
If as expected NatWest call back to confirm a lend of 180k max I will be £7k short. I don't have £7k and our parents have lent us as much as they can to pay for our wedding next month.0
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