New build mortgage rejection

First_timer_newbie

Hi there,

I'm hoping someone can explain our mortgage rejection as our advisor seems as baffled as us. We are first time buyers and have reserved a new build. Went to see an advisor and issued a decision in principle from preferred building society without any problems. Provided all paper work including proof of deposit. Two weeks passed with no word then today we were informed the mortgage was being rejected but not because of any problems with us! Apparently the lenders have decided they have issued enough mortgages on the development and do not want to issue any more. Advisor and builders have never heard of this before. Has anyone heard of this issue or is there more to it than meets the eye?

Thank you for any advice you can give.

ACG

Its surprising they have not heard of it before.
Lenders do not like to over expose themselves on developments. Its normal. Do not read too much in to it, find a new lender and fingers crossed you should be fine. You can check sometimes if they are over exposed before applying.

First_timer_newbie

Thank you. Do you know how we can check if a lender is over exposed?

ACG

If you use a broker they can check with their account manager, if you are applying directly I would call their customer services.

First_timer_newbie

Thank you very much.

Thrugelmir

Building Societies don't lend on the scale of the major banks. So may well become very selective with business they'll underwrite.

First_timer_newbie

Thank you. It is all very worrying but I'm glad to hear that it isn't necessarily a problem with us.

Anzhelka

Was it Leeds ? We have been rejected for the previous property we applied to for the same reason. They lend up to 20% of the properties with the same postcode. But usually they do let you know about this pretty quick.

First_timer_newbie

Hi Anzhelka. It was Leeds! Did you get sorted out OK after the rejection? I'm really anxious because they took two weeks to tell us.

MerrilyA

Hi,

Since you mentioned the building society said the issue is not with you then there's no need to worry.

A good mortgage broker will be able to assist you.

Anzhelka

Well it wasn't sorted later on, as we had no higher deposit to apply to a different lender...Leeds only needs 5%....that was last year...
We are applying now to a different property with Leeds again and we are waiting for our mortgage offer now. We have also changed our mortgage broker, as previous was completely useless, had to chase her many many times to get anything sorted. new broker said that we have now all chances to get approved, so fingers crossed....our credit history is excellent, income is fine as well, only trouble is that we have small deposit.