Nationwide Wont Lend on Flat but has approved others in same building

LeagueOfWolf

Nationwide will not offer a mortgage on the flat I want to buy as it's close to a strip club.
I did not know it was close to a strip club, no one mentioned this to me and you can not see it on google maps unless you know the name of it which is frustrating. I know it has detrimental effect on value of property but this flat is in a town centre and close to lots and lots of amenities and great transport links. I hope to live in it for a while.

It's a new build and there are 18 flats in the same building.
The estate agent has confirmed that Nationwide and Metrobank have offered mortgages to a few more others in the same building so he is confused why they wont offer me.
My broker is planning on appealing with the details of the other approved flats in the same building do you think I have a case? He seems to think that if it comes back that my surveyor is correct and the others missed out that detail the other applicants might get their offers retracted?

Some second opinions please thanks!

davidmcn

Probably won't do you any harm to ask, but they may feel they are already over-exposed if the value of the development as a whole goes down.

miloninja

I had similar when I was looking for mortgages - it was down to over-exposure in the area as it was a new housing estate. I had to use another lender as they wouldn't budge!

csgohan4

Least you won't be far from a good drink with a view

sheff6107

Nationwide. There's your problem.

Good luck trying to fathom out a decision. Try the Halifax instead.

FIRSTTIMER

Nationwide are VERY picky in my opinion more so on the property rather than the person. Tesco and FirstDirect/HSBC are the two I would recommend.

AdrianC

LeagueOfWolf wrote: »

Nationwide will not offer a mortgage on the flat I want to buy as it's close to a strip club.
I did not know it was close to a strip club, no one mentioned this to me and you can not see it on google maps unless you know the name of it which is frustrating. I know it has detrimental effect on value of property but this flat is in a town centre and close to lots and lots of amenities and great transport links.

It's in a city centre. It's close to a lot of things, as you say. Some of them may change their business over the time you live there.

Clearly, this strip club can't be VERY close to the flat or very obvious, else you would have noticed it when you viewed the property. Nor can it be a major issue, since you're still keen on living there even knowing of it.

No, the strip club will not be a factor in the mortgage lender's decision. Far more likely is simple over-exposure to that particular building.

andyf1980

When we were buying a new build Nationwide told us that they will only lend on a certain number of properties on a development. It may be that they have already reached this number.

martindow

Mortgage companies can change their criteria and may now be more risk averse. Or your deposit percentage could be less than other people who have been granted a mortgage previously.

Have they told you the refusal is because of the strip club or is this conjecture on someone's part?

LeagueOfWolf

They said it's because it's on a busy road in the town centre and because of the strip club being opened until 7am on weekends.

My mortgage percentage is only 63%.
I called up the estate agents they have been longing me out and telling me Nationwide have retracted their previous offers and will get back in contact. 2 days pass I have to keep bugging them for them to tell me.
Thanks FIRSTTIMER they have got back to me that Metro Bank and HSBC are willing to lend on it and they have 8 agreed mortgages so far. Mortgage broker is worried and from a personal genuine concern he's like "What if you want to resell in 5-10 years"

I'm just trying to think this through