Mortgage on a concrete flat

Prentiz

I've had an offer accepted for a 2-bed flat for £78,500 and can provide a 10% deposit. The flat is ex-local authority, build in c.1965 using a concrete frame construction, with masonry infill. It is the 3rd of 4 floors. Together with my partner, I did have an mortgage offer with Britannia at 3.79% - but they've now said that, because of the construction and the marketability of the flat as ex-LA, they will only lend up to 75% LTV - and I don't have more capital to put in.

The estate agent tells me that Halifax and HBOS will lend, but that the indicative APR will be 5.99% - which puts almost £100pm onto the repayments - making the repayments the same as if we bought a £95K property.

I will try some mortgage brokers this evening - but can anyone give me a steer on this in the meantime? FWIW, my partner and I both earn around £30k pa.

The_J

Yes, HBOS are a good bet, so are RBS/Natwest but I don't think they are much better.

Also think about the future, when you are selling, your buyers will have the same problems getting the mortgage.

Conrad

Be aware lenders also decline where ex council flats have a shared walkway, typically an open corridor where each front door is accessed.

The local EA will probably have better info on this compared with any non local broker. It's not jusy about black and white criteria, it's also an issue of the comments of local surveyors.

Woolwhich have been known to lend on such flats but as I say it will depend on the surveyors assesment.

Personally I think your nuts to buy this. Modern Concrete is suited to hot DRY climates. In Britain the jury is out but in all likelyhood our damp climate will gradually cause the concrete to falter. What if all lenders stop lending on these in 5 years time - you'll be stuck with for life and then what if expensive concrete repairs are needed one day and all owners have to cough up?

Personally I'd go for a smaller flat in a better immediate setting.