Non Tradtional Construction mortgage

PaulyH

Unfortunately it looks like the great mortgage I got with HSBC I can no longer use as we are now buying a NTC house (Laing Easiform). It seems now that my options for a new mortgage are limited. I have been offered a fixed rate of 5.99% but I need 15% deposit. The only thing I can find at 90% are all above 7%.

I can get a parental loan for the extra 5% but would really rather not. Anyone else bought a NTC house recently and got a half decent mortgage.

Mrs_Bumble

That is a very high LTV for a non standard construction, you sure this is the right house?

Interest rates are high for a 90% LTV regardless of the construction.

Get advice from a local independent whole of market broker, I say local because if there are this type of house locally then they will know where best to place.

PaulyH

I have the same advise from two independant 'whole of the market' brokers. One local one not local. Both came up with exactly the same results. The 5.99% is with Abbey National who WILL lend on this property. They leant on the same road only 2 years ago.

The other rates over 7% are with RBS and Halifax.

Because of the construction type I have been told that some Laing Easiform houses are in many cases not even classed as NTC and are in the 'non defective; class of NTC houses. I'm unfamiliar with the term 'High LTV'. Is that good or bad! (excuse the ignorance)

PaulyH

By LTV do you mean a high % of the value of the house as mortgage?

Mrs_Bumble

Sorry high LTV, high loan to value = 90%.

It will always be a headache.

How do Halifax feel about it?

Have you spoken to local surveyors about the type of property and potential lenders?

PaulyH

My close and trusted relative is a surveyor. He, ironically, actually owns a NTC property on which he got an 100% mortgage in 2004. Of course any offer will be subject to a full and formal intrusive survey in any case but all the offers mentioned above are on this property (subject to the results of the surveys).

From what your saying it seems like they are the best available. No?

Mrs_Bumble

Can't think of anyone else that you could try, sorry!

your friend the surveyor could he come up with any other lenders that might be happy?

PaulyH

Well he hasn't freely offered up any information, which he would have done had he known of any, and I hadn't thought to ask him for mortgage advise in his capacity as a surveyor either (do they know more than brokers?).

He doesn't operate, in a professional capacity, in the residential field but has colleagues that do. I'll ask him to test the water. I'm also aware of a NTC surveyors who we'll probably instruct so I'll ask them too.

Thanks for the advice.

PaulyH

Just had confirmed with HSBC who we have our 'active' mortgage with they will lend at the current rate of 5.4% but will require 20% from us.

Mrs_Bumble

A surveyor should know which lenders are happy to lend on that type of construction as in theory they will be carrying out the survey for the lenders when they go out to that type of property. So won't be able to tell you about interest rates but should be able to shed light on the lenders that are happy.

10% extra is that doable?

PaulyH

No its not, not for an the smal 0.5% off the interest on Abbey's offer anyway.

I can, reluctantly, stretch to an extra 5% with a parental loan but not 10%. It would have been stupid to proceed with someone else having not checked with HSBC first tho. Its also encouraging, on the property front, that HSBC will lend full stop on a property as they are the most difficault bank for dealing with NTC houses.