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Confused - Mortgage v Equity
workingboy
Posts: 320 Forumite
Confused about the restrictions whether its a Mortgage or Equity.
Recently applied for Equity via a 'Lifetime mortgage'.
Despite a sale values of property in the area of approx. £290k and a few have sold slightly above or below in recent months.
The equity lenders will not grant a lifetime mortgage due to the amount of Upvc cladding on our property being greater than 20% used.
Yet majority of properties like ours have the same ratio of Upvc cladding including those sold recently.
So why can a property like ours sell with a mortgage and not lifetime equity mortgage.
Recently applied for Equity via a 'Lifetime mortgage'.
Despite a sale values of property in the area of approx. £290k and a few have sold slightly above or below in recent months.
The equity lenders will not grant a lifetime mortgage due to the amount of Upvc cladding on our property being greater than 20% used.
Yet majority of properties like ours have the same ratio of Upvc cladding including those sold recently.
So why can a property like ours sell with a mortgage and not lifetime equity mortgage.
0
Comments
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Equity 'release' and lifetime mortgage are synonymous.
Don't know why there would be a different view. Both are loans secured on property by first charge.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 -
Different lenders will have different criteria. I suspect it's more the policy of the lender than to do with the type of product.0
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Concerns about UPVC cladding are starting to be raised about the spreading of fire and melting in fires.
Perhaps your lender has become more cautious about this. Perhaps other lenders are becoming more cautious as well.
It could be that some of the other properties in the area were mortgaged, before new concerns were raised. Or some lenders are currently less cautious about UPVC cladding than others.0 -
shop around between lenders or speak to a broker.0
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This makes sense as they will accept up to 20% of cladding on top of brick.Concerns about UPVC cladding are starting to be raised about the spreading of fire and melting in fires.
Perhaps your lender has become more cautious about this. Perhaps other lenders are becoming more cautious as well.
It could be that some of the other properties in the area were mortgaged, before new concerns were raised. Or some lenders are currently less cautious about UPVC cladding than others.shop around between lenders or speak to a broker.
This was a broker who tried approx 9 lenders.0 -
Confirmed by my Equity broker that no Equity lender will lend against our property due to it being a 'half brick, timber-clad and timber framed' (single brick) and that the timber-clad has been replaced with Upvc cladding as approx. 60% of our estate of the same design properties have done.
Although I have said of either tiling or bricking up to remove the Upvc, he says not to carryout any work until the lenders have said they would offer Equity once the work is completed.
So now totally confused. Why can a property be sold at approx. £280k but not get Equity. ??0 -
So as started out......
Confused the difference between Mortgage for Equity release v Property purchase0 -
A mortgage for property purchase is buying a property.
An equity release is a long-term loan, taking money out of your property.
The problem both face is due to the Grenfell Towers fire and a lot of mortgage equity release companies not willing to lend money for properties with cladding:
https://en.m.wikipedia.org/wiki/Grenfell_Tower_fireMortgage started 2020, aiming to clear 31/12/2029.0 -
I understand the reasoning for multi-floors but this being a single storey and as in majority of property in UK with a pitched roof having flammable timber trusses.0
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If I had a valuation survey of the property for myself.
Would the surveyor advise reasons why a lender would not grant 'equity release' on the build of the property and advise any improvements besides a valuation.0
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