bank Over exposed on site! - I now get rubbish rate

littlekay32

Hi,

I am buying a new house, and I was offered Nationwide by the mortgage broker, with rates like 2.5%. which is fantastic! - i accepted these ....it give me £500 cash back and free valuation. it then appears before my forms went off to Nationwide had overexposed on this particular site and won't lend anyone any money. I contacted Nationwide directly about this and they confirmed after 48hrs that they couldn't lend and that they had over exposed.

I have now gone back through the whole 3hr process and they have given me Santander with a rate of 3.04% - free valuation no cash back... so not only have i got to pay more monthly, i am loosing out on the £500 too.

What i don't get and i find unfair is, that people who are quicker say getting a house or what ever get the better rates and just because so many have bought on a site already with a particular lender that you then get penalised and have to pay more technically and get rubbish rates.

I doubt i am on my own with this. any thoughts on this would be amazing!:beer:

worried_jim

The lender sets aside an amount to lend. Went this has been lent the offer closes. Somebody has to be last.

Thrugelmir

littlekay32 wrote: »

they have given me Santander with a rate of 3.04%

If you think that this is a rubbish rate. Are you prepared for the day that rates start rising again. Affordability is assessed at 7% interest rates for good reason.

AnotherJoe

I don't understand your argument. Do you believe you should be able to force Nationwide to loan to you even if by the time they got around to your loan they've maxed out on whatever internal conditions they have (some of which by the way will be due to government regulations)?


Now if your argument is, "well because they started talking to me they must continue" , then all that would happen is that instead of you being told at the end of the process "we've maxed out on lending in that development" you'd have been told at the start "sorry we've already got as many applications as we can handle" And I wonder if then you'd be complaining "that's unfair some of those applications will fail and mine might have succeeded and you wouldn't have used all your money so why can't they cater for that?"

amnblog

You were simply at the wrong end of the queue.

Life probably owes you a little result in the future.

rtho782

Don't buy newbuilds and you wont have this issue

There are other issues you'll avoid too...

kingstreet

No lender will risk lending on too many properties on one site in case anything later happens to affect it and their security.

A limit of 25% to 35% is normal for a larger development, closer to 20% to 25% for a small one.

Of our current sites, two are currently up to their exposure limits with Nationwide and another with Leeds.

David_White

You'll have to chalk it up to bad luck I'm afraid.

I'd be just as annoyed as you in that situation but it is what it is.