Nat West pulled our mortgage a day before exchange need a new mortgage double quick

macca

Nat West pulled our BTL mortgage at the last minute as our house has a restrictive covenant and apparently they don't "do" restrictive covenants - pity they didn't say that back in November when they offered!
Anyway now need a decent BTL mortgage in double quick time. Any suggestions and any suggestions on how to make sure it gives through in double quick time - have a school place hanging off this move!!
Thanks in advance
Macca

Dave_Ham

It will be about choice of lender, what is the restrictive covenant?

Its been a long day, but how can a school place hinge upon a buy to let mortgage, or am I being naive??

macca

Hi thx for reply school place hinges on us buying a new house and therefore renting existing property out.
Restrictive covenant is nothing horrendous just says we can't build on our garden which is fine as there's no access anyway!
Nat west don't look at the covenant it's just a bridge too far apparently!
A solicitor colleague says the covenant is uninforceable anyway as the previous occupiers who applied the covenant don't live anywhere near so it couldn't affect them!
Nb ltv is approx 60%
Regards
Macca

Dave_Ham

So the Natwest was let to buy on your current property and you have a new residential mortgage for the purchase - I get it.

Natwest are infamous on some of their quirks on lending policy.

A broker will know where to place this and at rates similar to the Natwest one. Many of the buy to let lenders exclusively deal with brokers, so suggest you hunt one down tomorrow.

Good luck

macca

The broker is struggling to find anyone who will deal with this and a let to buy mortgage - what is the matter its only a restrictive covenant - loads of houses have them!!!
Anybody know a specialist broker who might be able to help?
Thanks

Wh05apk

Do you have a mortgage on the property currently? Could you not just get consent to let?

macca

I may have to resort to that as a last resort - my mortgage rate would jump by 4%!!

cannyscot_2

This lot specialise in BTL - I am not sure what they charge though.
http://www.trafalgarsq.co.uk/trafalgar-square/mortgage-brokerage/about-mortgage-brokerage.html

Mortgage works would also be a good bet and if you have a decent solicitor they should suggest a solution.

macca

Quick update for you tried to get the Let to buy with my existing mortgage provider - the Clydesdale - they're saying they don't know how the overage charge got past them the first time around - its not sounding good is it?
Would indemnity insurance solve it?

Dave_Ham

No, unfortunately not as many of the lenders have this as a criteria point.

Is there any way the convenant itself can be amended?

Who placed/registered it?

Aside from the stress already, this will also be an issue for many lenders that a potential buyer would use so needs to be attacked. Sure you have already realised this.

eg44

We have similar problem with a covenant. Mortgage lender has just pulled out last minute because of overage agreement/uplift clause on title. Seller is now prepared to just put on a restriction of not being allowed to build a further dwelling on land/garden of existing house. Can anyone tell me if mortgage companies will lend on this?