First time buyer - refused again

AliceBanned

Just got my hopes up to buy my Housing Assoc flat but Abbey wrote today to say due to the construction (concrete) they will not lend on it. It has been "reinstated" with brick cladding and should be to morgageable standards, according to my landlord and engineer's certificate. I have lived here for six years, been saving and was offered a mortgage in principle based on my finances. The flat would have cost me £58k with discount and I earn £27k. seems pretty ludicrous. The morgage broker is on holiday and he was advising that it all looked ok but obviously has to go through this process; he said Abbey do usually lend on unusual builds etc. Not sure where to turn, fed of up of renting (I'm single, 44) and feel I can't move on in any way. I work in London so need to be nearish to work. Live in Herts at the moment. Very miserable today after this news. Just feel like a failure. . I may have to look at shared ownership or rent for the rest of my life. Just feel in a trap really. I don't enjoy my job much but feel so demoralised I don't even feel willing to keep on working any more. People around me all seem ok, but they bought years ago. (ie not in this area, but my friends). I wasn't in a position to buy but not because I spend extravagantly, far from it. Seem to have always struggled and now this is another slap in the face.

harvey115

Try a good broker, who would have checked the construction with a lender before placing your application.

AliceBanned

I am beginning to wonder whether good or honest brokers are in short supply, I'm sorry to say as I seem to have been messed about a lot by brokers and lenders. Thanks.

AliceBanned

Broker did say at the early stages that Abbey usually lend on concrete properties. Just found out that similar one sold in the same street in 2004. Am trying to find out whether there was a mortgage on that.

I don't know whether it's just the lenders still holding on to their money (or the nation's money, should I say).

harvey115

If the broker initially checked with the lender and they said yes at that point and now declined. I would say your broker is either not telling you the truth or he has not asked the question at all.

I would say you ditch the broker and seek someone experienced, ask your friends and family for a contact.

AliceBanned

Well I could try. Or one of the brokers recommended on MSE. Not sure whether applying again so soon will be a problem. Also if it is this difficult to get a loan to buy it, I may never be able to sell it on later!:( feel very stuck really.

Simon_gloster

A mortgage on principle is always granted an offer subject to valuation.

The advisors/brokers dont see the property in general, but if the construction type was disclosed by you and its ex council, some are not mortgageable.

What is the name of the construction type? If you dont know, the council will.

Edit. Having it brick clad is pointless unless the whole street is done the same. Steel framed council houses can be ok, but again it depends on the type.

You say in your heading, refused again, who else has turned you down?

AliceBanned

Simon_gloster wrote: »

A mortgage on principle is always granted an offer subject to valuation.

The advisors/brokers dont see the property in general, but if the construction type was disclosed by you and its ex council, some are not mortgageable.

What is the name of the construction type? If you dont know, the council will.

Edit. Having it brick clad is pointless unless the whole street is done the same. Steel framed council houses can be ok, but again it depends on the type.

You say in your heading, refused again, who else has turned you down?

Halifax turned me down, about 3 years ago. It is Wates construction and is now termed "Wates reinstated". I have a copy of the engineer's certificate saying reinstated to mortgageable standard. The broker had already forwarded this to Abbey. The surveyor was quite abrupt and unpleasant, and brief. He has mentioned asbestos on the roof of the sheds outside, but this is well known and he seems to have made a big deal of this. yes the whole street was done, about 8 years ago I believe, with new pvc windows at the same time. Over 100 flats so no cheap bit of work. I disclosed the construction type from the start. The surveyor asked me what it was (Abbey's) and when I told him he said "that's poured in concrete rather than block and is fine". He told me there was nothing to worry about. All very odd. Why say that and then tell Abbey it is not security against the loan?:(

Wh05apk

In fairness to your broker, non-standard construction can often be almost on a case by case basis, and will be subject to the valuers comments, possibly having asbestos roof's on the shed has not helped and will cause the underwriters more concern.

Your broker should be able to contact lenders/valuers and discuss the construction with them before submitting the application, local valuers will know the properties, and have a good feel for who will and who won't lend on them.

AliceBanned

What struck me was how two-faced the valuer has been. He gave me reassurance (i didn't ask for it in any way) and then advised them not to lend. I really felt uncomfortable about him at the time.

AliceBanned

Wh05apk wrote: »

In fairness to your broker, non-standard construction can often be almost on a case by case basis, and will be subject to the valuers comments, possibly having asbestos roof's on the shed has not helped and will cause the underwriters more concern.

Your broker should be able to contact lenders/valuers and discuss the construction with them before submitting the application, local valuers will know the properties, and have a good feel for who will and who won't lend on them.

It is strange that the process has got this far, in that case. Surely Abbey could have got advice from a local valuer at the start of the process, and declined then? Seems a waste of everyone's time and my wellbeing as it is quite distressing finding this out now, as I;m basically stuck.