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Help To Buy Nationwide Mistake?
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MissLaura
Posts: 50 Forumite
Hi All,
Wondering if you can help with a quandary.
Here's the situation in a nutshell:
+ Was buying a new home with help to buy equity loan
+ Ended up pulling out due to severe building delays
+ Found a different home, built in the 70's
+ Called Nationwide and got a decision in principle for mortgage alongside the help to buy equity loan
+ Put offer in
+ Offer accepted and was told the buyer wants a 6 week exchange
+ Solicitor appointed and fees paid
+ Full mortgage application done on Friday - during that appointment I asked about the help to buy to see if there was something I needed to do about it and I was told to go to the help to buy website and complete some paperwork (didn't need to do this last time, house buyer took care of all the help to buy stuff)
+ Read the website and found out that the equity loan isn't appropriate for anything other than new builds which this house isn't...
:eek:
Nationwide have been aware since the decision in principle point that the house was built in the 70's. And I have all the paperwork from the Nationwide mortgage application at:
Purchase Price: £156k
5% Deposit: £7,800
20% Equity Loan: £31.200
Mortgage: £117k
Have Nationwide made a really big error with the help to buy at my expense here?
I'm new to all of this so I don't know if I am onto a problem or just in a really big confused pickle.
Thanks in advance for any help.
Wondering if you can help with a quandary.
Here's the situation in a nutshell:
+ Was buying a new home with help to buy equity loan
+ Ended up pulling out due to severe building delays
+ Found a different home, built in the 70's
+ Called Nationwide and got a decision in principle for mortgage alongside the help to buy equity loan
+ Put offer in
+ Offer accepted and was told the buyer wants a 6 week exchange
+ Solicitor appointed and fees paid
+ Full mortgage application done on Friday - during that appointment I asked about the help to buy to see if there was something I needed to do about it and I was told to go to the help to buy website and complete some paperwork (didn't need to do this last time, house buyer took care of all the help to buy stuff)
+ Read the website and found out that the equity loan isn't appropriate for anything other than new builds which this house isn't...
:eek:
Nationwide have been aware since the decision in principle point that the house was built in the 70's. And I have all the paperwork from the Nationwide mortgage application at:
Purchase Price: £156k
5% Deposit: £7,800
20% Equity Loan: £31.200
Mortgage: £117k
Have Nationwide made a really big error with the help to buy at my expense here?
I'm new to all of this so I don't know if I am onto a problem or just in a really big confused pickle.
Thanks in advance for any help.
0
Comments
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Help To Buy - Equity Loan is only available on newbuilds and Nationwide isn't part of Help To Buy - Mortgage Guarantee.
It only has 95% products for those who have used its save to buy scheme.
When it became clear you were buying a second-hand property, it should have been explained to you Nationwide would no longer be able to lend.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thank you kingstreet.
I will call Nationwide in the morning. The adviser didn't seem as confident as I would have liked in the Help To Buy Schemes, said he hadn't done one for a while.
This has set us back 2 weeks and is going to be a massive issue.
I'm assuming we'll now need to re-apply with a lender who is part of the mortgage guarantee scheme?
Or find a new build property?
Gutted.0 -
Yes. If you need a 95% mortgage, you will need another lender.
If going for another newbuild, you could continue with Nationwide as long as you are a FTB. They no longer offer HTB - EL to homemovers.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks Kingstreet. Yes we're first time buyers.
I absolutely can't believe we've gotten this far in the process only for me (not the bank!) to realise when looking to do the help to buy paperwork that what we've put in the full application with Nationwide (following 3 telephone and 2 in-branch appointments about the house) for something that doesn't actually exist.0 -
You should never submit a full mortgage application until you have the correct Authority To Proceed from the HTB Agent in your hand.
This would only be produced if a Property Information Form and Reservation were submitted to a HTB Agent. I suspect the person you were dealing with has never dealt with such a case. It isn't something you'd forget once you've done one!I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Given that this is the case and we need to find another lender - does anyone have any recommendations?
We've now got another (completely unnecessary) credit search on our files and we'll need a 95% mortgage very quickly in order to not lose this house. I could cry.0 -
PS. If we change lender at this stage (offer accepted) then will the seller / solicitor / agent be OK about it?0
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PS. If we change lender at this stage (offer accepted) then will the seller / solicitor / agent be OK about it?
Happens pretty frequently.
I'd get yourself to a broker immediately, explain the situation and stress the urgency. If you've had a couple of meetings with Nationwide I would imagine you have bank statements, payslips etc. prepared so take absolutely everything with you.
They still have regulated processes to follow but it's in your best interests.0 -
Apology email from Nationwide received.
"Just having as quick look before my appointment and it looks as though you are right. This is something I should have checked before seeing you on Saturday. Nationwide aren’t part of the government scheme that allows them to act as guarantors, we only participate in the help to buy scheme that involves and equity loan.
For you to be able to get a 75% mortgage it is going to have to be a new build that you look to purchase.
Otherwise it will have to be a 95% mortgage you take out meaning the repayments will be more than originally anticipated on an existing property. I have an appointment in 15 minutes, I can refund your fees that have been paid no problem and I understand this will be disappointing for you both. I should have checked the latest policy on H2B as it does change regularly and I know this was something we supported when it first came out."
Last line isn't true. I spoke to Help To Buy Midlands and they say the policy hasn't changed, the 20% equity loan has always only been available on new builds. What poor information and service we have received from Nationwide.
So £250 of solicitors fees, £99 of Nationwide fees, 2 weeks of wasted time, new bank accounts with Nationwide, our previous bank accounts which we have held for over 10 years have been closed, credit checks on our file and we're back to square one with no mortgage even in process.
Sigh.0 -
Did you use the solicitors instructed via Nationwide or appoint your own?
If you appointed your own it's not necessarily money wasted, as if they've applied for searches etc. they can still act on your behalf regardless of a change in lender.0
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