Advice sought: mortgage refused

heatherh765

Hi,
I was just wondering if anyone else has experienced this and if so, what you did. I've applied for a mortgage through a broker for a flat that is a couple of stories above some shops. I've just had a letter today to say that the mortgage has been refused because one of these shops is a takeaway. The mortgage company told me on the phone just now that they never lend for these kind of properties and this is clearly stated in their criteria.
I've just paid £860 in fees to the broker and the mortgage company but as far as I'm concerned, the mortgage broker should have known that this would be refused as I told him in advance that there was a takeaway in the shops below. DO you think it's fair to either ask for a) a refund or b) transferral of the fees for the next application.
Has anyone else experienced trouble getting mortgages for properties above such commercial premises?
Thanks,
Heather

GMS

Broker should have at least made a call to the lender to check their stance. Property above commercial is difficult but can be done depending on the type of shop. Take aways, late night convenience stores etc are almost always a no no.

What fees have you paid so far?

Have you spoken to the broker? Is the broker connected to the estate agent selling the flat?

heatherh765

Thanks for the reply GMS. It's annoying because it's a large block some of which are three floors above the shops.
I'm trying to speak to the broker... waiting for him to call me back.
No, he's not attached to the estate agent. So far, I've paid £500 for his arrangement fee and £390 to the Mortgage Works (company who refused it) so I am not happy at all. I made the broker aware of the fact there was a take away on the ground floor.

holly_hobby

You may have lost your TMW fee with the lender, but I really would push the situ on his £500 fee (and reimbursement of the lost TMW costs from him) - as only the very inexperienced adviser would consider a flat above commercial prems, esp with late night people traffic/food outlets to be a non-issue/straighfoward application.

Hope this helps

Holly

Leon_W

In fairness, it is often the case that lenders will tell brokers it is down to the valuers comments. In which case it could have gone either way.

Now, that is not to say I think the broker is whiter than white. In these situations I would say that most brokers on this site, knowing the flat was above shops, would contact the lender to check the criteria and if they came back with the old " valuers comments " line then inform you accordingly. That way the onus is entirely on you to make that decision. This is what I would have done anyway.

Personally I think you are entitled to your fees back as any broker should know that anything above commercial premises could cause trouble. That message should have been conveyed to you so you could make an informed decision on whether to go ahead or not.