Can a housing development company dictate who I have my mortage with for a new build

helpneedeed

Hey guys....
So I have found a house&equality for the help to buy which is fab but the development company have said that I cant have my mortage with 2 certain mortage providers (which are banks) and which I have found out the one has the best available deal at 1.99% fixed rate for 2years which would be perfect.......
Now they have said that I cannot have a mortage with the 2 said providers due to the fact that the 2 providers have already filled there allocated allowance for the development site??!!
An advisor I spoke to said they have never heard of this before and I just don't know who to believe!!
There is a substantial difference between the provider I cant have (1.99% fixed for 2years) and the cheapest of the 'allowed' providers of 2.99%.
I don't know who to believe!!!!
Any help would be really appreciated please

Thrugelmir

An advisor I spoke to said they have never heard of this before and I just don't know who to believe!!

Lenders do limit themselves to exposure to a certain development, post code or even a block of flats. For the simple reason it reduces risk. Lenders prefer their mortgage books to be spread far and wide.

ACG

As above, if a lender has a decent number of properties on the development then chances are they will decline due to over exposure.

There is nothing stopping you checking with the lender yourself or through a broker to see if they have hit their exposure level though.

amnblog

Surprised the broker you spoke to had never heard of a lender being at their exposure limit on a specific development.

As ACG says, nothing to stop you checking with the lender.