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Mortgage declined after valuation based on owner occupancy rate?
jviz89
Posts: 2 Newbie
Hello,
Passed all checks with underwriter etc and was awaiting valuation with Nationwide (applied directly) for a leasehold flat in a purpose built block only to get a call to say they were unwilling to lend based on the owner occupancy rate (92% let, 8% owner occupiers) in the block. I've never heard of this being an issue before. The surveyor said it's a very good deal for the price as well. While obviously it’s their money to lend as they see fit it seems a bit of a bizarre position given I could probably get a BTL mortgage on it no problem and the issues of re-saleability would surely be the same? Is this a common rule with lenders? I’m going through a broker this time around but if the same thing is going to happen again I may as well not bother.
Any help is much appreciated.
Passed all checks with underwriter etc and was awaiting valuation with Nationwide (applied directly) for a leasehold flat in a purpose built block only to get a call to say they were unwilling to lend based on the owner occupancy rate (92% let, 8% owner occupiers) in the block. I've never heard of this being an issue before. The surveyor said it's a very good deal for the price as well. While obviously it’s their money to lend as they see fit it seems a bit of a bizarre position given I could probably get a BTL mortgage on it no problem and the issues of re-saleability would surely be the same? Is this a common rule with lenders? I’m going through a broker this time around but if the same thing is going to happen again I may as well not bother.
Any help is much appreciated.
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Comments
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Different lenders have dfferent criteria. I think this is one of those things even a broker could have been caught out by initially, unless they knew the block/area.
Im not sure what help you are after as I can not see any specific questions, but I am sure there will be options...there must be unless the 8% were cash buyers.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Typically the maximum LTV for a BTL is 75%.
What is yours?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Typically the maximum LTV for a BTL is 75%.
What is yours?
Mines 95%, good point, was just going off what the surveyor said about it not being an issue if it was a BTL mortgage.
In any case I'll reapply through broker and try to ask the lender about this at the first available opportunity. Thanks for help everyone.0
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