Help - Barclays lending criteria has left me up the creek!

Silvamagna

Advice much appreciated on what to do next;

I’m buying a nearly completed barn conversion within a development of 6. The builder however has assured me there are two planning applications and two title deeds for three and three properties.

I’m porting my Barclays mortgage to save ERC and retain my fixed rate. My LTV is only 25%.

My mortgage valuation via Barclays came back at zero last week followed a week later with this statement:

Our underwriters have received the valuation report.  The valuer has commented that the subject property is not suitable security to Barclays, due to the development of six barn conversions, undertaken with supervision provided by an architect’s certificate. Valuers has confirmed Developments supervised with professional consultants’ certificates are restricted to no more than five. According to this development we are unable to proceed with your application for the subject property.

Does anyone know what the next best steps would be? I’ve asked for the ‘clause’ in writing from Barclays as no one I mention it to seems to have heard of it?

Thanks

anselld

If there are two planning applications and two titles, are there not two Architect Certificates with three properties on each?  Ie if the Builder has followed through with the intention of this being two completely separate developments perhaps this was not communicated to the Valuer.

Silvamagna

Hi anselld,
There are individual PCC’s (architects certificates) for each of the dwellings.
That doesn’t seem to be the issue. It’s the maximum of 5 dwellings under PCC’s from my interpretation that is causing the problem.

Trying to contact someone at Barclays is becoming an issue, my dedicated mortgage adviser seems to have gone radio silent on me and will now only converse via the odd email.

Getting to actually speak to someone is impossible but I’m not giving up with this.

mi-key

Silvamagna said:

Advice much appreciated on what to do next;

I’m buying a nearly completed barn conversion within a development of 6. The builder however has assured me there are two planning applications and two title deeds for three and three properties.

I’m porting my Barclays mortgage to save ERC and retain my fixed rate. My LTV is only 25%.

My mortgage valuation via Barclays came back at zero last week followed a week later with this statement:

Our underwriters have received the valuation report.  The valuer has commented that the subject property is not suitable security to Barclays, due to the development of six barn conversions, undertaken with supervision provided by an architect’s certificate. Valuers has confirmed Developments supervised with professional consultants’ certificates are restricted to no more than five. According to this development we are unable to proceed with your application for the subject property.

Does anyone know what the next best steps would be? I’ve asked for the ‘clause’ in writing from Barclays as no one I mention it to seems to have heard of it?

Thanks

How much is the ERC and how much are you needing to borrow and at what rate is the port? It may be worth looking at other lenders via a mortgage broker and seeing how the monthly repayment figures add up. It may work out easier just to pay off the ERC with Barclays and go with someone else if they are refusing to budge. 

Unfortunately with high street and big lenders they tend to have their set rules, and nobody there can overrule these. It is daft though as having 6 instead of 5 properties makes no real difference, and with a 25% LTV they are hardly taking any risk !

ComicGeek

I can't see that the Architect's Certificate is worth the paper it's written on, I can understand why lenders are nervous about accepting them. 

We've only had them on really small projects, anything more than 3/4 units should have a proper warranty in place.

Silvamagna

ComicGeek said:

I can't see that the Architect's Certificate is worth the paper it's written on, I can understand why lenders are nervous about accepting them. 

We've only had them on really small projects, anything more than 3/4 units should have a proper warranty in place.

Hi Comicgeek,
Well that rules out quite a lot of properties that are unable to be mortgaged.

I disagree.

Silvamagna

mi-key said:

Silvamagna said:

Advice much appreciated on what to do next;

I’m buying a nearly completed barn conversion within a development of 6. The builder however has assured me there are two planning applications and two title deeds for three and three properties.

I’m porting my Barclays mortgage to save ERC and retain my fixed rate. My LTV is only 25%.

My mortgage valuation via Barclays came back at zero last week followed a week later with this statement:

Our underwriters have received the valuation report.  The valuer has commented that the subject property is not suitable security to Barclays, due to the development of six barn conversions, undertaken with supervision provided by an architect’s certificate. Valuers has confirmed Developments supervised with professional consultants’ certificates are restricted to no more than five. According to this development we are unable to proceed with your application for the subject property.

Does anyone know what the next best steps would be? I’ve asked for the ‘clause’ in writing from Barclays as no one I mention it to seems to have heard of it?

Thanks

How much is the ERC and how much are you needing to borrow and at what rate is the port? It may be worth looking at other lenders via a mortgage broker and seeing how the monthly repayment figures add up. It may work out easier just to pay off the ERC with Barclays and go with someone else if they are refusing to budge. 

Unfortunately with high street and big lenders they tend to have their set rules, and nobody there can overrule these. It is daft though as having 6 instead of 5 properties makes no real difference, and with a 25% LTV they are hardly taking any risk !

Hi,
The ERC is £2.7k and the rate is 2.24% fixed until Jan 24.

I will/can go with another lender but just feel, the computer says not! Without any further effort from Barclays.

I’ve been with Barclays for 35 years.

ComicGeek

Silvamagna said:

ComicGeek said:

I can't see that the Architect's Certificate is worth the paper it's written on, I can understand why lenders are nervous about accepting them. 

We've only had them on really small projects, anything more than 3/4 units should have a proper warranty in place.

Hi Comicgeek,
Well that rules out quite a lot of properties that are unable to be mortgaged.

I disagree.

That's fine, but after more than 20 years in the construction industry there is zero chance that I would ever buy a house with only an architect's certificate. There's a reason warranties exist!

tightauldgit

Silvamagna said:

mi-key said:

Silvamagna said:

Advice much appreciated on what to do next;

I’m buying a nearly completed barn conversion within a development of 6. The builder however has assured me there are two planning applications and two title deeds for three and three properties.

I’m porting my Barclays mortgage to save ERC and retain my fixed rate. My LTV is only 25%.

My mortgage valuation via Barclays came back at zero last week followed a week later with this statement:

Our underwriters have received the valuation report.  The valuer has commented that the subject property is not suitable security to Barclays, due to the development of six barn conversions, undertaken with supervision provided by an architect’s certificate. Valuers has confirmed Developments supervised with professional consultants’ certificates are restricted to no more than five. According to this development we are unable to proceed with your application for the subject property.

Does anyone know what the next best steps would be? I’ve asked for the ‘clause’ in writing from Barclays as no one I mention it to seems to have heard of it?

Thanks

How much is the ERC and how much are you needing to borrow and at what rate is the port? It may be worth looking at other lenders via a mortgage broker and seeing how the monthly repayment figures add up. It may work out easier just to pay off the ERC with Barclays and go with someone else if they are refusing to budge. 

Unfortunately with high street and big lenders they tend to have their set rules, and nobody there can overrule these. It is daft though as having 6 instead of 5 properties makes no real difference, and with a 25% LTV they are hardly taking any risk !

Hi,
The ERC is £2.7k and the rate is 2.24% fixed until Jan 24.

I will/can go with another lender but just feel, the computer says not! Without any further effort from Barclays.

I’ve been with Barclays for 35 years.

In most cases if the computer says no then there isn't much that the bank can do. It's not like the old days when a bank manager could make an exception for a good customer. If the underwriters are saying X then X it will be and unless someone there has the authority to waive the rules then you'll probably just be coming up against a brick wall unless you can demonstrate that your property actually complies with the criteria. 

SDLT_Geek

Could the developer be persuaded to arrange a warranty which would meet Barclays criteria?  Even if there was a cost to you for this, it might be better for you than the alternative.

Silvamagna

SDLT_Geek said:

Could the developer be persuaded to arrange a warranty which would meet Barclays criteria?  Even if there was a cost to you for this, it might be better for you than the alternative.

I can certainly enquire, thank you.