Nationwide - Save to Buy not accepted on New Build

fuelman_2

We were nearly at the end of our full Mortgage application today, when the process was halted.
Adviser was baffled as to why it wouldnt let her finish.

We opened a Save to Buy account in April 2012 after a meeting in Branch declaring we were after a new build and they told us this was the best way forward.
We got our DIP on March 11th and our MA told us to go ahead now and speak to the developer and start the ball rolling.

We have now been told today that the Save to Buy cannot be used for a new build as new builds need a 15% deposit and this is the cut off point for Save to Buy.

Our MA even called Nationwide HQ (not sure who but heard her say MLA) who confirmed this was indeed the case.

The MA left us in the little room in branch to go talk to the other 2 MA`s who confirmed this was indeed a shock to them.

We have been told that we can get a mortgage no problem if we raise our deposit to 15% (we were putting down 13% before to get the STB), so now in a position where we have to find an extra £4000 before our house is completed in 6 months and also we lose the £1000 cashback as it won't be a STB mortgage anymore.

Seems unfair as we have complied with everything Nationwide have asked us to do in the last year, being completely honest about it being a new build from the very start and now they seem to have created new rules that even their our advisors don't know about!

The MA we saw today is going to speak to her boss on Monday to see if there is anything they can do to help. She says she will fight our corner as she feels Nationwide are providing bad customer service on this occasion..

Anyone else come across this kind of thing?

Thrugelmir

Lending criteria can change at any time. The past year or so in the current financial climate has seem a rapid tightening down. As lenders look to reduce risk exposure.

The issue with new builds is that developers use all sorts of smoke and mirror tricks to hide the true selling prices of properties on developments. So lenders require a higher deposit to ensure that there's plenty of equity in the property. Should they need to take action if you were to default on the mortgage.

fuelman_2

Thanks for taking the time to reply.
As you can imagine we are gutted,and we know they can change the goal posts at any time, just really disappointed that they didnt tell us that the STB is not available with a new build.

kingstreet

Why not use Help To Buy to boost your deposit?

Nationwide maximum loan is 85% on newbuild houses. This is slightly higher than some lenders and lower than one or two others. Save To Buy does not over-ride the building society's usual lending rules.

Nationwide isn't going to change its lending criteria because one adviser doesn't know their own employer's policies properly.

nakiwala123

When we opened our save to buy in may 2012, we were told from the beginning that it was not to be used on new builds. Your advisor misinformed you!

fuelman_2

Think your right.

Looks like we may lose the £1000 cash back that came with the STB, pity as we had plans for that.

RedRuby_2

Once your deposit is 15% then you lose the cashback element of the STB, I found that out recently when I was doing some sums. I enquired about it as I thought it was unfair as when applying for the account i was sure that it said that it was for people who have a 5-15% deposit. Funnily enough if you have a 14.9% deposit you can still get the cashback, which could be a different of a few pounds.

Brock_and_Roll

Actually by not buying a "new buy" you have probably saved yourself the 10% loss in value you would have suffered the day you crossed the threshold!

brit1234

Buy a second hand property, the dimensions will be better and you have less risk of negative equity.