Barclays mortgage refused after 3 months application process due to "locality clause"

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I had a 3.63% 5 year mortgage approved with Barclays in on 23/08/22.
Due to the crazy market and a Barclays advisor that disappeared for a month, the valuation wasn't done until 10/11.
Today (5/12), the advisor has come back saying that they can't offer a mortgage because the house is subject to a locality clause which they say affects saleability.
(the locality clause restricts buyers to those who have been living and working in devon for 3 years, search "devon restriction S157").
Is there anything I can say to Barclays that might change their minds?
Do some lenders just have flat out rules that they won't lend on any houses with such clauses?
Obviously this rate is unobtainable now, and not getting this mortgage jeopardises the whole purchase.
thanks in advance!
Due to the crazy market and a Barclays advisor that disappeared for a month, the valuation wasn't done until 10/11.
Today (5/12), the advisor has come back saying that they can't offer a mortgage because the house is subject to a locality clause which they say affects saleability.
(the locality clause restricts buyers to those who have been living and working in devon for 3 years, search "devon restriction S157").
Is there anything I can say to Barclays that might change their minds?
Do some lenders just have flat out rules that they won't lend on any houses with such clauses?
Obviously this rate is unobtainable now, and not getting this mortgage jeopardises the whole purchase.
thanks in advance!
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Local Authorities, Housing Associations and private developers / house builders (as part of their affordable housing obligations) may offer properties for sale at a discount, where the discount is set as a percentage of open market value, for example 80%. This discount may apply in perpetuity; that is, for subsequent sales the owner can only sell the property at the same discount based on the open market value at that time.
The discount arrangement is usually under a ‘section 106’ restriction. Discounted market sales are acceptable provided this restriction does not apply to the lender who may sell the property at open market value.
Maximum 85% LTV based on the discounted sale price. Where there is a section 106 agreement, the LTV must not exceed 80% of the open market value (not the discounted sale price).
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If you are above 85% LTV it looks like its definitely ruled out. If it is below 85% LTV it looks like it is a blanket no if they are unable to sell are open market value - but this is S106 rather than S157.
Did Barclays know about this before the application going in? If they did, I would argue they could be on the hook for some compensation. If they didnt, then I think this is one of those things you need to take on the chin.
Halifax, Nationwide, Cambridge, and apparently TSB (but ive never tested them) are the usual lenders for these types of restrictions. Get them all the time in the Norfolk direction but usually under a s106. Same principles will apply though
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.