New Build and Mortgage Broker Recommendation

woodycivic

Hello All,

First time poster here looking for anyone with a similar experience to ours.

We reserved a plot on a new build house a few weeks ago. All was going well and we spoke to the recommended mortgage company for new builds who the sales office for the builder recommended. To our suprise they actually got a mortgage deal cheaper than we had been offered through our existing lender and also an independent broker. We were happy with this.

Last week we had the news that the valuer for the mortgage provider had valued the house £5k less than the actual price we were funding through our mortgage. We brought this to the attention of the sales office via email twice and also phoned and left a voicemail. A week had passed and we had heard nothing back regarding what they were going to do regarding this.

Today we visit site to have a look at the garden size as we wanted to see for our own eyes what it actually will be rather than going off the plan and scale drawing. Only then did the sales person inform us that the builder wasnt going to reduce the price anymore because our mortgage lender was still prepared to lend us the money so it wasnt an issue!!! We are in the fortunate position (Due to our hard work over 10 years doing houses up and selling on to make money to fund our final dream house!) to have an LTV of around 40%. However, even with this been the case we are not prepared to loose £5k of equity.

Surely this is a breach of data protection/confidentiality given the mortgage broker has obviously been speaking about our financial situation to the site sales office?

Our frustration and anger was further compounded this morning when the mortgage broker also told us that the mortgage product we had agreed to was no longer available and the next cheapest was .2 of a percent higher. Ok, so this works out at about £10 a month more so not a huge amount but the sales advisor at the site actually told us the product has always been only available to premier customers of the lender, of which we have never been.

As you can see, we are highly suspicious of the conduct of both the builder and mortgage broker and are extremely angry and annoyed at the whole situation.
Im sure the Financial Conduct Authority would be interested to know of the above events, or am i been naive here?!

G_M

woodycivic wrote: »

We reserved a plot on a new build house a few weeks ago. All was going well and we spoke to the recommended mortgage company for new builds who the sales office for the builder recommended. To our suprise they actually got a mortgage deal cheaper than we had been offered through our existing lender and also an independent broker. We were happy with this.

Last week we had the news that the valuer for the mortgage provider had valued the house £5k less than the actual price we were funding through our mortgage. We brought this to the attention of the sales office via email twice and also phoned and left a voicemail. A week had passed and we had heard nothing back regarding what they were going to do regarding this.

Today we visit site to have a look at the garden size as we wanted to see for our own eyes what it actually will be rather than going off the plan and scale drawing. Only then did the sales person inform us that the builder wasnt going to reduce the price anymore because our mortgage lender was still prepared to lend us the money so it wasnt an issue!!!

The salesperson and developer just want to sell ther property. How you finance your purchase is your problem, not theirs.



We are in the fortunate position (Due to our hard work over 10 years doing houses up and selling on to make money to fund our final dream house!) to have an LTV of around 40%. However, even with this been the case we are not prepared to loose £5k of equity.
Well buying any New Build involves loss of equity.It'slike buying a new car - drive it off the forecourt and it drops in value by X% instantly!


Surely this is a breach of data protection/confidentiality given the mortgage broker has obviously been speaking about our financial situation to the site sales office?
????

Your first mistake was using a developer-recommended broker.
But why do you think they've been 'speaking'?


Our frustration and anger was further compounded this morning when the mortgage broker also told us that the mortgage product we had agreed to was no longer available and the next cheapest was .2 of a percent higher.

These things happen. But it may well be that that was inevitable- see my comment above regarding choice of broker.......

Ok, so this works out at about £10 a month more so not a huge amount but the sales advisor at the site actually told us the product has always been only available to premier customers of the lender, of which we have never been.

As you can see, we are highly suspicious of the conduct of both the builder and mortgage broker and are extremely angry and annoyed at the whole situation.
Im sure the Financial Conduct Authority would be interested to know of the above events, or am i been naive here?!

Go and speak your independant mortgage broker again.

woodycivic

G_M wrote: »

Go and speak your independant mortgage broker again.

Thanks for your reply.

In terms of why we think they have been speaking, the site sales advisor knew that our mortgage lender was happy to still lend us the money despite the undervaluation. We didn't tell them this so the only other people who knew this information were the mortgage broker.

ethank

I don't know what you want from here? You were happy to buy the house at the price offered until it was valued at 5k less by a valuer looking at a set of plans. You see this as a loss, but you have not lost anything as you are paying what you had already agreed to pay for the house.

The lender probably agreed to continue the mortgage at the same rate, because of the size of your deposit.

[Deleted User]

ethank wrote: »

I don't know what you want from here? You were happy to buy the house at the price offered until it was valued at 5k less by a valuer looking at a set of plans. You see this as a loss, but you have not lost anything as you are paying what you had already agreed to pay for the house.

The lender probably agreed to continue the mortgage at the same rate, because of the size of your deposit.

Very good point. The actual value to you hasnt changed. Only the perceived value to a lender. Some surveyors just hate new builds so it may have just been a bad day.

Regarding the data protection bit. Most / a lot of buyers now are asked to prove their ability to purchase the property. This would apply to pre-owned as well as new builds. Most of the time it is showing proof of deposit and proof of AIP. This would mean they could easily figure out if you could swallow this downvaluation.

A lot of agents around me call me to confirm the mortgage and deposit split. They dont ask for paperwork as they all know me but they would know if its a 5% deal or a 50% deal. Otherwise how is the seller to make a choice on if its a good offer or not.

I don't see anything wrong here to be honest.