Carrington Mortgages UK Ltd.

craobhan

According to Companies House this firm of mortgage brokers used to be called CLEAR FINANCIAL SOLUTIONS (SCOTLAND) LTD. from 16 Nov 2006 - 05 Mar 2014.

Does anybody know if, digging any deeper would reveal a connection to Carrington Carr?

The reason I ask is that my eldest stepson is wanting to get a mortgage to buy and renovate a house for himself to live in. He currently is renting a local authority house and the right to buy is not available in Scotland any more.

An initial phone call revealed that they would not lend him anything over and above the price of the property. They do not do mortgages which release more funds as the renovation progresses. They will however happily lend him £100,000 on a ready to occupy property. They also provide the funds via the Yorkshire Bank.
Parts of this are giving me a sinking d!jà vu feeling. Am I right to think he should steer clear of them?

ACG

Digging deeper?
They are a Mortgage Brokers not a criminal mastermind from an 80s superhero film.

You can not take out a Mortgage for more than the property value in the main (there are exceptions with Right to Buy, but as you say that is not available then it would seem they are right).

What have you got a sinking deja feeling about? If you have been told that you can not lend more than the property value, then that would be correct and why you are getting deja vu.

Richey_

^^ is very good advice from ACG^^

In nice terms why would a lender offer more than th value on a property as if it goes belly up the need to know they can recoup their money, look at the Northern Rock fiasco with their 125% mortgages. Are you confusing self build mortgages?

Brock_and_Roll

Carrington Mortgages UK Ltd are already losing and have lost a large amount of money and given that hey are owned by a large American property company that managed to survive the US sub-prime crisis and subsequent crash in prices, I would have thought that they would be the last people to lend, or advise others to lend over and above the value of the property!

The chap should do what everyone else does - buy the place on a <=95% mortgage then renovate as he goes.

craobhan

I have obviously not expressed myself properly as regards value of the property. What I meant was a mortgage for the value of the property once renovated. I once had a mortgage to renovate a cottage from which we paid the vendor then drew down more funds as then project went along. Perhaps such products don't exist any more?

craobhan

What I have a sinking feeling about is that Carrington Mortgage UK Ltd. Is somehow connected to a previous firm that was called Carrington Carr Mortgages which got some very bad reviews on this forum.
The only reviews I can see on the net for Carrington Mortgage UK Ltd. are on their Facebook page and I think they could well have been written by themselves.

ACG

There are no Mortgages that will lend to you based on the end price as far as I am aware, there are Mortgages where you can lend an amount of the initial purchase price and then draw down on more funds once the work has been done (ie you fund the work then get the funds).

It is not something I am really that well up on however.

In terms of the broker being good/bad/ugly I have no idea. If you are in any doubt, try another broker for a second opinion.

craobhan

Thank you ACG.

amnblog

Totally baffled by this.

Why are you or your Son worrying about a potential lending arrangement and source that does not provide what he needs anyway?

Is he is doing a major build or refurbishment there are mortgage specialist deals for this where lending can be based on the completed value and funds released as work stages are completed.

Such a specialist deal may not apply in your son's case, if, for example, he is doing modest improvements rather than a true rebuild.