Please help a confused 1st time buyer.

goonernumber1

Hello.

Having been accepted for a mortgage (Northern Rock), found a place, got ALL searches completed, we have been declined and I would like some information on what we can do about it.

The reason for us being declined is that the building that we were hoping to buy was an ex local authority build, and northern rock wanted information on the amount of private properties and remaining council properties within the building. Out of 6 flats 3 are council and 3 are private. Under these grounds Northern Rock have declined us (this seems strange as we are about 3 months into our application and only had this to get through before change of contracts).

My question is, what now happens to the vast amounts of money we have paid to a) our mortgage advisor, b) Northern Rock, c) our solicitor...

Also, the first we even heard of this 'rule' was when we received informaiton that we had been declined. I seem a little agrevated that my mortgage advisor did not give me this information of this 'risk' at all, especially if we have lost money.

Lastly, and I thank you for you time, will there be any other mortgage brokers that would give us a mortgage with 3/3 private flates in one block. P.s. we initially went for Northern Rock as they're rate for 100% first timers was very good.

Thank you again.

lynzpower

Ive never heard of this rule - what floor is the flat on?

goonernumber1

lynzpower wrote:

Ive never heard of this rule - what floor is the flat on?

Middle of three.

Three of the properties are council, three are private, this doesn't meet the "more that 50%" rule so we have been declined...

lynzpower

Are you using an all of market broker?

Get yourself down there asap.

I had a similar thing where the halifax wouldnnt mortgage me, my broker just spoke to Abbey and they would. It delayed things by a week, so no biggie

goonernumber1

lynzpower wrote:

Are you using an all of market broker?

Get yourself down there asap.

I had a similar thing where the halifax wouldnnt mortgage me, my broker just spoke to Abbey and they would. It delayed things by a week, so no biggie

Sorry but what's an all of market broker?

lynzpower

gooner

An all of market broker is a mortgage broker who will have access to detials of every single mortgage on the market and will search for the best deal for you .I recommend https://www.alexanderhall.co.uk if you are in london

Che ck they take thiert fee from the lender if so it costs you nothing. :beer:

goonernumber1

lynzpower wrote:

gooner

An all of market broker is a mortgage broker who will have access to detials of every single mortgage on the market and will search for the best deal for you .I recommend https://www.alexanderhall.co.uk if you are in london

Che ck they take thiert fee from the lender if so it costs you nothing. :beer:

Actually ours is one of those, and found that Norther Rock provided the best mortgage. And yes they do take fee from mortgage people and not us. May be as easy as lynzpower said, just get mortgage advisor to try to get us the same / similar mortgage with someone else...

Anybody have any experience with 100% first time mortgages??

tomstickland

My question is, what now happens to the vast amounts of money we have paid to a) our mortgage advisor,

Actually ours is one of those, and found that Norther Rock provided the best mortgage. And yes they do take fee from mortgage people and not us.

Make your mind up!

Anyway, an all of market broker should be able to find you another mortgage provider. 100% mortgages provide less choice or worse rates than if you have a 10% deposit.

lynzpower

Tom,

but there is quite a lt of choice isnt there for 100% mortgages. OP, ask the mortgage advisor to explain again their role for you if you dont understand or get what they are doing. this is an important part of the process and you need to be clear about whats going on and whats what. Have you paid qany arrangement fees for the mortgage? Maybe this is what you mean? If you have, get your mortgage broker to get these back asap, or have you had a valuation report done, and paid for that? Ask your broker to explain again whats going on. I got my survey fee back from the halifax ( theyd taken the money but not done the survey) so dont worry too muhc, your broker should sort this all out for you.
HTH
Lynz
x

lowis

i have just received an agreement in principle from HSBC for my Right To Buy council flat - it is in a block of 60 - 15 are privately owned and it is on the 11th floor. it is in central london in a good area.

i found this mortgage myself, but i did get advice from both a fee charging and a fee free advisor - both advised me of the difficulties involved and warned me of lenders who might have issues subject to valuation - they were both very good on this point hence saved alot of time wasting for both of us i suppose.

for your info i was offered mortgages from Abbey and Halifax, I also spoke to Nationwide and they didn't seem to have a problem either.