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Non Traditional Construction -Bank Declined Mortgage
Just wondered if anyone had any information on this. After three months of sorting out a mortgage with Nationwide, they eventually declined stating - The subjects are classed as 'defective' under the Housing (Scotland) Act 1987. Lender guidance confirms that they do not therefore form suitable security for mortgage purposes.
But the Scottish Government repealed the ‘defective’ designation of these houses on 30th July 2018. These houses are still classed as defective in England and Wales, but not in Scotland under section 99 of the Housing (Scotland) Act 2014. Prior to this in 2014, a survey on a range of Orlit houses was carried out by the UK government in England, and it was the flat-roofed houses that were found to be defective, not the pitch-roofed houses - this Orlit house is a pitched roof.
Nationwide only did a 15-minute basic survey - although I had asked for the highest level of survey.
A relative wanted to buy this house, and was ready to put down 40% of the loan value but the bank declined. I'm just wondering why banks (or this bank) are saying it's defective when the Scottish gov says it no longer classed as that? I know banks are wary of lending on NTCs, but has anyone else been able to achieve a mortgage with reasonable rates on these types of houses? Have read a lot of the other threads on here about this but nothing seems too recent. Thanks.
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