Mortgage refused because of stone cladding on new-build

katemonkey

Hi GinaBrooks!

I'm afraid it wasn't a happy ending :-( After months of back and forth between my mortgage broker, the lender, selling agents, vendor and housing association, it all fell through. I also lost the fees I had to paid to my solicitor and underwriter.

Basically, Santander outright refused to lend based solely on the fact that the building had "Reconstituted Stone Cladding" (not ACM cladding which has the high fire risk). No one seemed to know what to do, the best advice my mortgage broker gave me was to simply find another property to buy - easier said than done in my circumstances as it was a Share to Buy property and I really had my heart set on it.

In the end, the vendor withdrew the sale because no one was budging - no one would lend on the property. Like Natwest with you, Santander was very tight lipped about giving any explicit reasons for not lending, apart from the fact the building had a type of cladding on it - no amount of documentation seemed to satisfy them.

Sorry to be the bearer of bad news, but I do hope your situation turns out better than mine did. I would really like to know how you get on.

Anthony.donoghue

Hello, I wondered if you had the same outcome? I am selling my property now and the buyers are having the same issue with regards to evidence that the cladding is safe

Many thanks,

Anthony

[Deleted User]

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haras_nosirrah

I have to be honest - cladding is a massive issue at the moment. I have found a lender who will consider it on the open market as long as there is a date in the diary to remove it and the company confirms they will pay all the costs but not found one yet under shared ownership

[Deleted User]

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Mystery11

I have an issue with a property I'm buying (only 5 stories, and cladding just on penthouse). BOI have rejected it. I'll require a BR 135 certificate ( which is challening as the amount of cladding is too small). Best case scenario is to agree to have the cladding removed entirely.


HSBC arent taking cladding into account just yet. (likely in the future). Halifax may consider if the block is less than 18 m high. Most banks only implemented the changes (as per the guidance by the MCHLG) in Jul-19 and its affecting borrowers everywhere Overall, this is a big deal, I see flat prices plummeting in the meantime.

[Deleted User]

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lindens

Lemonade2018 wrote: »

We had our annual meeting yesterday for our block of flats which are privately owned and found out we also have some cladding. The management company are waiting for the full report then assessment with Hampshire fire service to see if it needs to be fixed. My apartment has just gone on the market :mad:

If fix is required it could take years to rectify.

Having said that management company has said some new owner s have recently moved in so it depends on the mortgage lender.

The problem came alight from existing owner wanting to remortgage and it was refused due to cladding.

This is now giving me a bit headache as we need a quick sale.

cash buyer is your only hope for a quick sale i would say

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csgohan4

Lemonade2018 wrote: »

How do you know HSBC aren't taking cladding into account?

I am sure they will in the future, they are one of the most strictest lenders around