Can a builder refuse to sell on the basis of my mortgage provider?

cookyy2k

I am a first time buyer trying to buy a new build through a part ownership scheme. I have passed all the vendor's affordability checks, been approved by the government and have an AIP.

The problem is the builders are now telling me they don't accept my mortgage provider. Now call me naieve here but I thought everyone accepted money, doesn't really matter where its from.

Of course they are threatening my deposit if I can't secure a different lender and conveniently they have a panel of lenders they will accept and oh look a mortgage advisor they would like me to talk to so they can look at their panel.

The deposit isn't an amount I can't afford to lose so if they are "allowed" to do this I'm just walking away out of principal. If they aren't allowed to do this then how do I go about complaining about this tactic (and then do I proceed or leave anyway as a company willing to pull this could be up to allsorts)?

user1977

I presume it's mainly because they'll need to have an agreement with your mortgage lender to deal with the part-ownership aspect, and they'll know which lenders do and don't go along with that sort of scheme.

In any event, unless it's a protected characteristic yes they can refuse to do business with you for any reason they like.

cookyy2k

The AIP is specifically for a part ownership mortgage.

It's not really refusing to do business (which fine they could, but I presume they want to sell things?) It's more telling me I have to use a company they want me to and if I don't say bye to my (nonrefundable) deposit they already took.

user1977

cookyy2k said:

The AIP is specifically for a part ownership mortgage.

Yes, but the lender also needs to have signed up an agreement with this particular developer. Or is the lender saying they have in fact done that?

kingstreet

Part ownership? Do you mean shared ownership where a portion will be retained by a Registered Social Landlord and rent payable, or shared equity where a second charge will be taken over the property? HTB Equity Loan is a shared equity scheme. In which part of the UK?

cookyy2k

Shared ownership 50/50.

Sorted the problem. I rang the customer support of the builder and they told me the finance company (they subcontract) that told me that are talking rubbish and just send the AIP into them.