Mortgage Advice - Do it ourselves or use broker

sgraham_2

We are looking to get a mortgage for a city centre flat in the North West of England. We have a large deposit, good salaries and are looking for a good mortgage.

So far we have been let down as our mortgage broker has found out that we can't get a mortgage on a 7 & 8th storey building (10 days wasted in the hunt for a mortgage) from Scottish Widows and now we have just had a valuation and been informed that the property is too risky as there are businesses underneath (Accord). Should this have been picked up my our broker? Do we carry on with the searches ourselves?

Any idea of mortgage providers who will lend to an apartment on the 7th/8th floor, which have businesses on the first 3 floors.

Any help appreciated

DannyboyMidlands

I'm all for DIY but your case sounds like one where a broker would be helpfull. You just seem to have found a poor one.

Who is it? How did you find them?

Conrad

sgraham wrote: »

Should this have been picked up my our broker?

Yes.

You can claim against the broker for this, that is unless they gave you written warnings specifically highlighting the particular risk issues that could lead to a mortgage being declined.

The broker has been remiss in thier duty of care.

This really annoys me. Far too many brokers attend a course and hey presto call themselves an adviser. Where was the advising then? I bet thier marketing blurb makes statments like 'we take utmost care' etc.

If this case came my way, I would have advised up front the issue with shops / potential shop use changes. The high rise matter compounds things.

It might be possible to find a lender, but it will come down to valuers comments, so always a risk.

Honestly, I'd advise you buy soemthing else. WHAT IF NO LENDER LENDS ON THIS WHEN YOU COME TO SELL ONE DAY?


Complain to broker, seek money back, and state you will it take it to the regulator otherwise.

The central FSA principle that applies here is known as 'Treating customers fairly'. It compells advisers to ensure ALL systems and process' meet this objective. That means a system to identify early on obvious reasons a mortgage may fail.

The_J

It's going to be tough to find a home for that. Those would not have been my first choices for lenders, I would suggest that a bigger lender like Halifax or Natwest would be best placed for this type of building.

Dave_Ham

Poor show - assuming the broker knew there are commercial premises there, it is a mega turn off for lenders..

What types of commercial properties are there? From a lenders persepctive offices and hairdressers are much more likely to be accepted than kebab shops and pubs..

Conrad's point is surprisingly valid too, that if you struggle to nail a lender then how easy will it be to sell...?

Good luck

ACG

What type of commercial properties? If its things like a bakers, sex shop, take away or even a luanderette (in effect anything seen as off putting to potential buyers or higher risk in the sense it could go up in flames) it would be difficult to find a lender.

Also does the property have a WORKING lift?

7/8 stories, above commerical premises it definately wont be an easy task.

Crashandburn

Conrad wrote: »

Yes.

You can claim against the broker for this, that is unless they gave you written warnings specifically highlighting the particular risk issues that could lead to a mortgage being declined.

The broker has been remiss in thier duty of care.

This really annoys me. Far too many brokers attend a course and hey presto call themselves an adviser. Where was the advising then? I bet thier marketing blurb makes statments like 'we take utmost care' etc.

If this case came my way, I would have advised up front the issue with shops / potential shop use changes. The high rise matter compounds things.

It might be possible to find a lender, but it will come down to valuers comments, so always a risk.

Honestly, I'd advise you buy soemthing else. WHAT IF NO LENDER LENDS ON THIS WHEN YOU COME TO SELL ONE DAY?


Complain to broker, seek money back, and state you will it take it to the regulator otherwise.

The central FSA principle that applies here is known as 'Treating customers fairly'. It compells advisers to ensure ALL systems and process' meet this objective. That means a system to identify early on obvious reasons a mortgage may fail.

Bit heavy handed isnt it from the information in the first post. Most lenders who say 'subject to valuers comments' in most of these cases.

easy solution would be to check land registry for the names of lenders who have lent on the other flats. Or ring round large survey firms to see when they have last recommended the property as suitable security.

Woolwich are quite strong on flats above commercial........but again subject to valuers comments!!!