Mortgage company refuses to lend on flat - options?

Options
LydiaTheKind
LydiaTheKind Posts: 10 Forumite
in Mortgages & endowments
Hi all,

FTB here.
Found a flat I really like. I’ve put in an offer, that’s been accepted (hurrah!).

Mortgage application has been done, but the first mortgage lender completed the valuation and they have refused to lend on the property. They have said that they are very happy to lend that amount of money to me, just not on that particular property as there is a high proportion of local authority tenants in the building.

My mortgage advisor has now put in an application with another bank to see if they will lend on the property. Has anyone had a similar experience as this? I’m worried that when I remortgage in a few years time I’ll have very limited options. Additionally, when it comes to selling the property, I might find it hard to sell?

It would be great to hear any thoughts or experiences.
:T Hopeful first time buyer in 2019 :T
Currently reading: Mythos by Steven Fry

Comments

  • stator
    stator Posts: 7,441 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Options
    These are valid concerns you have. But a decent mortgage broker is the only one who can advise you.


    Is your mortgage advisor independent? Do they cover the whole market?
    Or are they attached to an estate agents etc.
    Changing the world, one sarcastic comment at a time.
  • LydiaTheKind
    LydiaTheKind Posts: 10 Forumite
    Options
    Independent, comes recommended by a friends brother.
    I’m waiting on his reply. It could be that the second bank will refuse to lend on the property as well, which will take the decision out of my hands.
    :T Hopeful first time buyer in 2019 :T
    Currently reading: Mythos by Steven Fry
  • stator
    stator Posts: 7,441 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Options
    To be honest the broker should be checking these things before you apply.



    But if there's only one or two lenders who will touch the property, then I think you have your answer as to future saleability.
    Changing the world, one sarcastic comment at a time.
  • amnblog
    amnblog Posts: 12,443 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Options
    Lydia

    Consider a series of alarm bells here:

    Ex- LA Flat - Bell One
    Low private Ownership - Bell Two
    Plus 4 floors in block - Bell Three
    Deck access to front door - Bell Four

    There can be other complications like construction type but the more Bells the fewer your options.

    I am doing one with three bells currently for an existing Client.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • LydiaTheKind
    LydiaTheKind Posts: 10 Forumite
    Options
    Thanks for the replies.
    It’s ex-LA and low private ownership but no deck access and only three story. Are all ex-LA flats slightly harder to mortgage, or only blocks? There’s a few ex-LA houses which have been split into flats, I just wonder if I’ll have similar issues.

    Thanks!

    Thanks!
    :T Hopeful first time buyer in 2019 :T
    Currently reading: Mythos by Steven Fry
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards