Help with finding a mortgage on a house with an occupancy clause.

bez.59

We are going to be buying our first home and had a mortgage in place from natwest for up to £150,000 with a 2 year fixed rate of 2.99 but they say they won't give us a mortgage for a house with the Derbyshire occupancy clause (Have to have lived and worked in Derbyshire for 3 years which we have) which is any house in the town we want to live in.

The only place our mortgage advisor found that will give us a mortgage on these houses is The Halifax but they will only give us £120,000 with a 2 year fixed rate of 4.29.

£120,000 isn't really enough and with the 4.29 it makes the monthly repayments higher than we want.

Anyone have any idea's of anywhere that would give us a mortgage or any advice of what we can do? We have already enquired at The Post Office, Britannia, Woolwich, Northern Rock, HSBC and RBS.

Any help would be great thanks.

ACG

Have you tried nationwide? The derbyshire building society is part of them?

bankhater_1965

i have a son at 23 i have discouraged him from getting a mortgage , he rents instead ! sorry of the topic abit i no

Perelandra

Whilst I can feel myself screaming at myself for suggesting this...*

Could you ask the estate agent? They must come across this situation frequently.





* carries a risk of letting the EA get their foot in the door to seeing one of their own "in-house financial advisors"!

bez.59

We haven't tried nationwide not sure if the mortgage advisor tried them. I will give them a ring thanks.

I think if we have money for the deposit we might aswell get a mortgage.

The estate agent said they have sold a few houses with the clause on recently and just gave me the mortgage advisors number.

LunaLady

bankhater_1965 wrote: »

i have a son at 23 i have discouraged him from getting a mortgage , he rents instead ! sorry of the topic abit i no

Then why say it? :undecided

Thrugelmir

bez.59 wrote: »

£120,000 isn't really enough and with the 4.29 it makes the monthly repayments higher than we want.

Then is the clause the real issue. This suggests that a £150k is outside of your affordability range. A rate of 4.29% isn't high. Rates may well end up being far higher than this in years to come.

bankhater_1965

LunaLady wrote: »

Then why say it? :undecided

because i think its good advice not to have a mortgage and renting has more benifits
and yes i am a homeowner

bez.59

Thrugelmir wrote: »

Then is the clause the real issue. This suggests that a £150k is outside of your affordability range. A rate of 4.29% isn't high. Rates may well end up being far higher than this in years to come.

So do you think we should go for the mortgage from Halifax (4.29)?

It wound mean we don't have enough to do the house up as there are a few things that need doing to it so they would have to wait.

kingstreet

Just following through ACG's advice, it may be worth looking at other locally-based building societies.

Nottingham and Mansfield are based in Nottinghamshire. Hanley Economic and Leek United in Staffordshire. West Brom, Dudley and Tipton & Coseley in West Midlands.

These lenders may consider a S106 property in the county neighbouring theirs.

Is your adviser offering independent mortgage advice? Whole market? Limited panel? We need to know what basis they are working on to be able to say who they've considered.

Dave_Ham

Useful info from kings, no way Natwest will offer more than Halifax so would check this..

Cannot do anything about rates though, as not great

Good luck