Tower block mortgage advice needed for FTB

Mokka

We are about to apply for a mortgage on our RTB council flat in a concrete tower block. The block has over 50% leaseholders and flats are very easy to let out (central london).

I got quotes from Santander and TSB and the advisors I spoke to sounded very positive.

Credit reports look good and high LTV means we've been quoted good rates.

However I am rather alarmed by people reporting they have been refused mortgages after the lender's surveyor report, seemingly for no other reason than the flat being ex-council in a tower block.

I know that the last flat to sell in my block went for cash.

Most of the flats in local tower blocks are snapped up by cash buyers- BTL investors- not sure if this is because owner-occupiers have trouble in getting mortgages.

I would very much appreciate any 'insider info'.

Would rejection by one of these lenders affect our chances with another lender?

Also is it wise to instruct a conveyancer if we are not 100% sure if we can get a mortgage?

kingstreet

Mokka wrote: »

We are about to apply for a mortgage on our RTB council flat in a concrete tower block. The block has over 50% leaseholders and flats are very easy to let out (central london).

I got quotes from Santander and TSB and the advisors I spoke to sounded very positive.

Credit reports look good and high LTV means we've been quoted good rates.

However I am rather alarmed by people reporting they have been refused mortgages after the lender's surveyor report, seemingly for no other reason than the flat being ex-council in a tower block.

I know that the last flat to sell in my block went for cash.

Most of the flats in local tower blocks are snapped up by cash buyers- BTL investors- not sure if this is because owner-occupiers have trouble in getting mortgages.

I would very much appreciate any 'insider info'.

Would rejection by one of these lenders affect our chances with another lender?

Also is it wise to instruct a conveyancer if we are not 100% sure if we can get a mortgage?

Do you mean owners, or tenants?

High LTV = bad. Low LTV = good.

Possibly.

No and no. No record is kept of a decline, but unnecessary credit searches won't help. Don't instruct legal work until you are happy you have secured the finance you need.

Mokka

Thanks for your response

kingstreet wrote: »

Do you mean owners, or tenants?
Half owners half tenants, slightly more owners

High LTV = bad. Low LTV = good.

Sorry, meant low LTV

Possibly.

No and no. No record is kept of a decline, but unnecessary credit searches won't help. Don't instruct legal work until you are happy you have secured the finance you need.The problem is TSB are asking for the details of our solicitor, so how can I give this without instructing someone first? This is doing my head in!

Yorkie1

You can instruct a solicitor but advise them not to do any chargeable work at all until you have secured the mortgage.

Mokka

Thanks Yorkie1. This forum is great!:j

kingstreet

You don't even have to instruct them.

Simply add their contact details to the mortgage application. Once you know it's proceeding, you can then instruct them.

There will be no contact between lender and solicitor until mortgage offer is issued.

Make sure solicitor is on lender panel.

Let_Us_See

No need to worry about lender rejections. Most lenders have a criteria regarding blocks of flats and to minimise possible rejections take details of the tower block to a broker and pay them to do the ground work.

Provide:

• Total number of floors in block?
• Lift to all floors? If not, which?
• What floor is your proposed property located?
• Type of entrance/acess? Individual off corridor, or access directly from communal outside walkway?
• Contact council and request breakdown of social tenants to private owners?
• Provide postal code and ask the adviser to phone Colleys? If they ask why, then your talking to the wrong adviser.

Good luck.

kingstreet

Let_Us_See wrote: »

ask the adviser to phone Colleys? If they ask why, then your talking to the wrong adviser

Bang on.

Mokka

Thank you very much for all your input.