Halifax definition of a 'new build' property

lottie-cat

I will try to keep this to the point!

I have had an offer accepted on a bungalow which was originally part of an RAF base. The builder has owned the site since 2008 and no one has been in the property since. They have renovated the bungalow (heating, cosmetic changes) and this was completed in 2014. The properties are advertised as renovated.

I spent a good part of 5 hours applying for a mortgage over the phone with my current provider, Halifax. Everything was agreed and confirmed and I paid £500 for the survey today. I locked in to my current product last month as I had come to the end of the term and was advised my new product was fully portable.

I have since received an email from the advisor asking if Anyone has lived in the bungalow in the last six months as it could be classed as a new build property if not. This would mean the ltv of 90% would not be available to me. I found the following information on the Internet:

An initial occupancy/new build property is classed as any property being occupied and/or sold for the first time on the open market in its current state and includes converted and refurbished properties. These will fall into one of the following categories:

Newly built property.

Refurbished property i.e. refurbishment of an existing residential property, typically a re-furbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken.


So two things really:

1) Has anyone been in this position and what was the outcome?
2) Have I been misold my current mortgage as at the time of agreement I was told it was fully portable without restriction?

Advice gratefully received!

ACG

1) This is fairly common with a lot of lenders where a property has been renovated.
2) Portable means the rate is transferable, however the proprty and your circumstances have to fit the lenders criteria. If you have paperwork saying otherwise then go and argue your case with them, alternatively ask them to listen to the call, if they have said that it is unrestricted then I would again say go and argue your case.

Theyre unlikely to allow you to port the mortgage over but they may refund the val fee and waive any ERCs.

Thrugelmir

lottie-cat wrote: »

2) Have I been misold my current mortgage as at the time of agreement I was told it was fully portable without restriction?

Prove it. Verbal recollections aren't sufficient to make such a claim. "Without restriction" is simply too broad to be likely.

kingstreet

The property will be classed as a newbuild, so the max LTV is 80%.

Portability is ability to move terms from old mortgage to new one, if the lender is prepared to lend. It doesn't over-ride lender criteria if this would prevent the lender lending what is required.

lottie-cat

I see what you are saying however when I took on the new product just over a month ago I specifically asked about moving in the new year. Originally I was going to go on to the standard rate but the advisor talked me in to locking in to this product. Had he explained that the mortgage would only be available on a new build with a ltv of more than 20% I would simply have refused and continued with the variable rate. I know there is no chance I could afford a deposit of 20% on the property I was looking to buy. I will have to see what they say today.

betmunch

You need written proof, or a recording of the conversation.
If you have it they should put you back in the position you were in before the transaction, if you don't then all the evidence points to standard porting rules were acceptable to you.
Lodge a formal complaint setting out what you understood to be acceptable, and what you expect them to do about it. They will check their records for the recording and written dicumentation

lottie-cat

betmunch wrote: »

You need written proof, or a recording of the conversation.
If you have it they should put you back in the position you were in before the transaction, if you don't then all the evidence points to standard porting rules were acceptable to you.
Lodge a formal complaint setting out what you understood to be acceptable, and what you expect them to do about it. They will check their records for the recording and written dicumentation

Thank you for your advice

amnblog

Was the new property and potential move discussed in your meeting with the Bank when you switched your product?

lottie-cat

amnblog wrote: »

Was the new property and potential move discussed in your meeting with the Bank when you switched your product?

Yes absolutely. It was all done over the phone but I specifically told them I wanted to buy a new house in the new year (I'm 9 months pregnant and we are currently in a 1 bed). We were intending to market our house in jan but had an offer off market that we couldn't refuse last week.

betmunch

lottie-cat wrote: »

Yes absolutely. It was all done over the phone but I specifically told them I wanted to buy a new house in the new year (I'm 9 months pregnant and we are currently in a 1 bed). We were intending to market our house in jan but had an offer off market that we couldn't refuse last week.

When the move was discussed, did you tell them it would be to a new build?


They always say calls may be recorded for training and whatnot, you better hope this one was.

amnblog

If it was done over the phone it was most likely recorded.

If you had told them the nature of the the purchase and loan to value in that conversation you may have a case.

Otherwise you could be on a sticky wicket.

Either way it does not help you with the purchase of course. I know of one lending option that might considered 90% on your new property, but you would incur an early redemption penalty (probably 3% of your mortgage) from Halifax when selling you current home.