Panicking...mortgage on a property with an annexe

roje

Most people would not realise this is a problem, this is why people use mortgage brokers. How would someone realise this 'should' have been addressed earlier? Surely most people obtain a DIP before they choose a property anyway, so unless they were specifically hunting for a property with an annexe they wouldn't know at that stage.
I had no idea that annexes caused any problems with mortgages. Can't people just have it as a condition of the mortgage that they will never rent out any part of the property or is it not that simple?

Senior_Paper_Monitor

There are many other criteria that are not considered in a DIP - which is why I personally view DiPs as of very little importance other than the analysis of 'borderline credit' cases.


Brokers are not immune to being caught out by unpublished criteria - we generally spot likely pitfalls and have them checked out in advance but I would admit to two cases tripping over this week on criteria, that I would not have suspected of being a problem and are not published anywhere I can find, this week !!


For example - having spent a considerable amount of research time over the last couple of months preparing for the issues with RTBs looking to remortgage (particularly to BTLs within the clawback period) we processed our first such application - to have it bounced by one of the three lenders we identified willing to do this, because of BTL remortgage restriction of minimum £250K value on remortgaging ex council owned properties (not mentioned in response to my extensive questionnaire on the subject) !!


But frankly almost any broker would have spotted the 'annex issue' and done appropriate advance research.


Fortunately the OP has by accident selected a lender who may well accept the property.

roje

Do they really make people rip kitchens out?

missminx007

Thanks to all who have responded. I am genuinely shocked that we have got this far in the process without anyone querying it. I don't know why it has been missed but it has. Hopefully it will all go through, we have instructed the searches as its a repossession and we want to get it tied up quickly.

amnblog

The mortgage market is full of icebergs where the borrowers, (and estate agents) see the top third, but do not consider the two thirds that are under the water.


Brokers know about the stuff under the surface.


Hence the reason I am always getting stick on here for telling people they should not be going direct.


SPM is correct above on two counts.


1. Some Lenders are more comfortable with these type of properties than others


2. Selecting a sympathetic lender does not solve the issue - each property still needs to be researched on its own merits.


If there is one scenario that needs a broker, and plenty of work before application, it is purchase of a repossession.

missminx007

Can I just point out, we are using a mortgage broker!!! Evidently not a very good one!

castle96

but... did you even tell him/her that the property was not of, eg, 'normal type/construction' ?

betmunch

missminx007 wrote: »

Can I just point out, we are using a mortgage broker!!! Evidently not a very good one!

Whys he not very good?


He placed you with a lender that will consider the type of property you are buying.

Senior_Paper_Monitor

I was just about to say the same as Betmunch !!!


#17 before his existence was mentioned - seems to have done fine (presumably not by luck) / OP has been trawling the internet and panicked.


Time would be better spent asking the Broker about what research he did.

missminx007

The mortgage company we are using is who we have our current mortgage with and we are porting so I don't think he has necessarily carefully chosen the correct lender. Yes, we gave him the details of the property. I would have appreciated it if he had mentioned to us that there might be an issue and we would have held off doing the searches.