Equity loan Application

talal211981

Hi i recently sold my house and was in the process of buying a new build under the Help to buy equity loan scheme, however close to signing my contract my solicitor picked up on the fact there was no paper work for the equity loan.

Long story short we had not applied for the equity loan as we did not know that we had to, we used an independent mortgage advisor who never mentioned it to us and neither did the developer.

What im trying to find out is who should have advised us that we needed to apply because they are both blaming each other and now the sale and purchase are in jeopardy!

NOTE: at time of writing i made the application and now wait for the decision!

dgtazzman

I doubt either of them are liable in a legal sense, though both of them should have known how the process works by now, or if they didn't, should have found out. I do guess the 'blame' as such would fall on the IFA as he's the one dealing with the mortgage and should be dealing with the HTB agent.

Are you sure you won't have to go through the entire mortgage process again? You usually can't put in a mortgage application till you get your Authority to Proceed from the HTB agent. If your mortgage provider wasn't aware it was to be a HTB mortgage, they might have also put you on a wrong product/assessed you incorrectly, I would certainly check what your IFA applied for...

talal211981

From the last conversation with her, she informed me it is 100% a HTB mortgage with Nationwide and the reason they did not need the ATP was because nationwide allow any of their mortgages to be used as a HTB unlike other lenders who have tailored mortgages for HTB.

Problem is she now ignores our calls and emails and im not sure what to do from here.

dgtazzman

If the mortgage is correct, I guess you just wait for the HTB agent to come back with the paperwork, but as I understand it, all the positions are up for tender at the moment, so I would be anticipating a delay.

talal211981

Oh i am definitely expecting a delay for sure, i just hope its all ok and doesn't fall through.

I just cannot be sure of the mortgage details being correct and as the IFA refuses to reply to my emails or take my calls it makes me suspicious.

i dont know how i would find out

I feel like writing a letter of complaint but i just dont know who to write it to.

dgtazzman

Why don't you contact Nationwide's mortgage department directly? The IFA is only an intermediary, the mortgage is in your name, so I'm sure they'd be happy to deal with you, they did in our case when we contacted them for a copy of some of the paperwork.

talal211981

I just have but the new business department is closed until monday, ill try monday thanks for your help anyway.

chanz4

the form takes 3 working days to process

talal211981

Thanks chanz4 they told me on the phone up to 4 working days, i hope it all goes through ok and i hope i dont have to re apply for a mortgage

Sparx

You will not need to re-apply for the mortgage. Once you have the ATP from your local HTB agent you are ready to go.

It only took us 3 working days after our IFA sent the application to have a ATP come through the post. This was 2 months ago though.

ethank

There is no credit checking on the HTB Equity Loan from the HTB Agent. If the lender will lend, then you will get the EL. It is just a paper exercise, so you'll no doubt hear soon.

Bear in mind that most of the HTB Agents changed to new providers on 1 April 2014, so they might be a bit slow.......