90% Mortgage on Flats

BekahLeaDee

Help needed! 

In the process of selling our flat. Have a Buyer all going well and have just received an email from our Estate Agent saying our Buyer cannot get a mortgage! 

She had an Agreement in Principal but since then lending on flats has become restricted. Her Agreement pulled and now she cannot find anything else! 

Our purchase depends on the sale and a chain above so it will be so devastating if this all falls through

Does anyone know who us still lending on flats at 90%? Any suggestions appreciated. 

monetxchange

Reading some of the broker comments on here, it's extremely hard to get a 90% at the moment. It'll also be complicated by her circumstances, ie is she self employed or has debt? Are there affordability issues?

I'm self employed and had to up to 12% deposit with a 40% equity loan to get a AIP from Santander.

BekahLeaDee

monetxchange said:

Reading some of the broker comments on here, it's extremely hard to get a 90% at the moment. It'll also be complicated by her circumstances, ie is she self employed or has debt? Are there affordability issues?

I'm self employed and had to up to 12% deposit with a 40% equity loan to get a AIP from Santander.

Thanks for your reply.
As far as we are aware she is employed full time with a very stable job (police officer). 
It seems to be the "flat" aspect that is the problem. 

haras_n0sirrah

She will likely need a 15% deposit at the current time

katie91_2

Do you have an EWS1 for your flat? If not, it’s very unlikely any buyer will be able to get a mortgage on it regardless of LTV.

BekahLeaDee

katie91_2 said:

Do you have an EWS1 for your flat? If not, it’s very unlikely any buyer will be able to get a mortgage on it regardless of LTV.

From the little research I have done is this not just a requirement in high rise flats? Ours is no more than two storeys high and is a listed building. 

csgohan4

EWS1 are being requested even for flats less than 18m, so lenders are being either stupid or overly cautious

https://www.bbc.co.uk/news/newsbeat-54062189

katie91_2

BekahLeaDee said:

katie91_2 said:

Do you have an EWS1 for your flat? If not, it’s very unlikely any buyer will be able to get a mortgage on it regardless of LTV.

From the little research I have done is this not just a requirement in high rise flats? Ours is no more than two storeys high and is a listed building. 

As the poster above says, lenders are currently requesting the form for any multi-occupancy building. We are in a similar situation, currently trying to sell our flat in a 4 storey (and also grade II listed) building but are unable to do so without the form. I would suggest contacting your management company/freeholder to understand whether they’ve started the process of obtaining the form.