Mundic mortgage question for MortgageMomma

olympus593

I recently found a thread on this forum (via Google) relating to someone attempting to obtain a mortgage on a property made of mass concrete construction (mundic).

There was a reply from Mortgagemomma that stated she was putting a deal through with Cheltenham & Gloucester and that she would post back if successful.

There didn't seem to be any further posts. Does anyone know, possibly Mortagemomma, what the outcome was?

We have been offered an affected property where the mundic is only within the party wall, all of the external walls are of stone construction. This should mean that the chemical reaction within the blocks would be less likely to occur as they are protected from the elements.

I am aware of the mundic mortages from Fineants and a company based in Liskeard, Cornwall, but does anyone know what their interest rates are at present?

Any other advice would be much appreciated.

PasturesNew

Read this thread about mundic/mortgages

http://forums.moneysavingexpert.com/showthread.html?t=141890

Which is the one you found first.

The thread says that those two lenders are about 6% above base, making them about 11.5% now.

olympus593

Thanks. Yes that's the thread I read but I didn't remember there being a rate there.

11.5% is a bit steep which is why I was hoping to find out if Mortgagemomma was successful.

payless

Has it been tested and proved "mundic"

olympus593

Yes mundic has been confirmed but only to the B/C classification further tests could confirm it is the better B classification or the worse C classification.

We didn't really want to go down this route and associated costs until finding out our funding options.

silvercar

If you are having problems finding a lender, who will you sell the property to?

olympus593

I wouldn't buy the property if I couldn't find a more mainstream lender such as the previously mentioned Cheltenham & Gloucester being more flexible and lending on certain mundic properties.

The purpose of this thread as opposed to previous ones is to establish which mainstream lenders will lend on this type of property, and what their terms and conditions may be.

I guess my hope is that if I can find/get a favorable mortgage others will be able to at a later date, and whoever is interested can be provided with details of my lender.

The properties are less expensive to buy and there is a ready market for them as I suppose there are enough people who are lucky enough to be cash buyers.

Mundic block properties are fine if the blocks are kept dry, as this prevents the chemical reaction taking place within the block. They are however dreadful if water is allowed to get a hold. I speak from experience as our current rented mundic property could well be a pile of dust in the next few years!

Mr_helpful

Ive never known C&G be the best for unusual constuction. I once owned a rare concrete property and they wouldnt touch it but no probs with HBOS group.

neverdespairgirl

I think it depends on what type of unusual construction. My parents' house is definintely unusual - it's a wood and plaster 1320s hall house, and their mortgage is with C & G.

MortgageMamma

Olympus I have replied to your PM - yes I was successful in getting it through C&G, and I also had a chat with Royal Bank of Scotland who said they wouldnt immediately rule it out but it depended on the loan to value.

HugoSP

Mundic block doesn't necessarily condemn the property.

There is the option of rebuilding the affected walls, in this case with the consent of your neighbour under the party wall act. Indeed it may be in there interests to do so.

Is the property one of two that has been created from a 19th centrury cornish dwelling?

We have two properties that "have the potential" for mundec block. They show no signs of the problem. The most recent of the two has a partial frontage in block work after being converted from a shop in around 1979. If this bacame a problem I would demolish and rebuild the wall in question and replace the rather naff looking 1970s shape window with something a little more in keeping with the rest of the house.