Mortgage certificate... Declined????

Wh05apk

moneysavingfail wrote: »

I knew I could smell a rat. Just couldn't work out who was the rat.

Think sometimes some brokers forget its someone's lives they're dealing with and not just a tick box exercise. Spent ages saving and now the mistakes others have made could have cost me dear for years.

I suspect this comes down to the "FTB", maybe the broker thought (should of checked?) that you were as you hadn't had a property for 10 years, and had assumed when they asked for 3 years of address history that as all were presumably rented/parents whatever that you were a FTB.

Speak to the broker, they may be able to find an alternative lender?

GMS

There may well be alternative mortgages available. Either ask your current broker to search or find a new broker.

What fees have you paid? Could you claim any back?

chopper78

If the issue is purely deposit, I wonder if you might be able to twist the arm of the builder to pay a 5% deposit - on top of the 15% you already have, that should take you to the 20% LTV you need. Although that depends on whether your lender accept a vendor gifted deposit?

Meeper

The biggest thing here is to not panic. There will be other options available, just get your adviser to do a proper job this time and cover some of the costs that you may be out of pocket thus far due to her error.

moneysavingfail

Wh05apk wrote: »

Thats your problem Abbey will only do 80% LTV for new build unless you are a FTB:

"Standard new build LTV limits (all borrowers including First Time Buyers)
House 80%
Flat 70%

Higher new build LTV limits (First Time Buyers only up to 4 x income)

House 90%
Flat 80% "

Definition of FTB:

"First time buyer
A customer who has never owned a residential property, whether in the UK or abroad. On joint applications all customers must meet the definition"

Update:

Spoke to them - they confirmed that Abbey are happy to still provide me with a mortgage as per certificate - just not on new build at that %age - so you were right. (I.e can have that mortgage on a second hand home only)

Still tried to spin the yarn though, but I expected that - no one likes to point blank say "I messed up and tried to cover my tracks"

They placed it through Nationwide and they accepted, but only at a £20k lower loan amount.

Running out of Ideas...

Might just take the hit - sensible?

GMS

Why did they apply to a lender who were £20,000 short?

Need to be careful here, too many DIP's will lower credit score.

Leon_W

Oh dear.

Sounds like your broker has got to the throw it round till it sticks somewhere stage. Not good.

Can I ask, is the broker connected to the new build company in some way ?

The reason I ask is that there are other lenders out there who will do 85% on new builds (provided it's a house not a flat). They also have more generous affordability calculations than Nationwide ( not difficult ).

BUT. These lenders (high street names you will be aware of) are sometimes NOT available to the pet developer broker (as they don't pay as much).

To be honest, it sounds like your broker is rubbish anyhow. Did they not check Abbey criteria ? Did they not check Nationwides easily available affordability calculator ?

Get someone better on the job in my view.

moneysavingfail

Latest Update and Help required:

I reached the point now where I've told everyone concerned that they are not to do any more credit checks on my file.

• I've got a 90% mortgage AIP with Halifax on a second hand home (Over 2yrs) Loan value of £172,435
• I've found another house in my street that I can purchase for £155,000
• Abbey say the AIP still stands for a second hand home, but need 15% deposit - I don't have it.

Now, in a final twist to the 'saga' - the new build company have decided to help me resolve it (Funny that ;-) They think they might know a way - But I really don't trust people playing around with my files like this...

So, I place the figures on here in the hope that you guys can tell me one way or the other if there is a way of structuring the deal to gain acceptance from the Abbey on the original new house.

If there isn't a sure fire way of doing it - i'll just be purchasing a different (second hand) home.

Original New House Details:

New build - complete
4 bedroom, terraced town house, with single detached garage

• Original Price £190,000
• 5% discount
• 5% gifted deposit
• They pay legal fees
• Carpets included
• Stamp duty paid
• 10% of my own deposit (18,500)
• I'm not a first time buyer

Abbey original AIP amount £153,420

Important info as per previous poster - and the reason where all this went wrong:

Thats your problem Abbey will only do 80% LTV for new build unless you are a FTB:

"Standard new build LTV limits (all borrowers including First Time Buyers)
House 80%
Flat 70%

Higher new build LTV limits (First Time Buyers only up to 4 x income)

House 90%
Flat 80% "

Definition of FTB:

"First time buyer
A customer who has never owned a residential property, whether in the UK or abroad. On joint applications all customers must meet the definition"

So, based solely on Abbey, are there any suggestions to get into the house (As my new build company tell me there might be a way) or should I proceed with the second hand home?

Meeper

No. Abbey will only lend 80% of the purchase price. If you have 10% and you are getting a 5% builder gifted deposit, then that's 85% and out of criteria. Getting a 5% discount to lower it to 80% will have the affect of reducing the purchase price, therefore the price will drop but the percentages will stay the same.

The only alternative is for the builder to put in a 10% builder gifted deposit, but from memory Abbey will not accept any builder gifted deposit in excess of 5% regardless, so I think you're goosed either way.