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Survey states new build, loop hole?

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  • Survey states new build, loop hole?

    I am a 1st time buyer and have recently started to purchase a 1930s maisonette. We started to get our mortgage together and got to the point of having the mortgage valuation survey done. It came back and to our surprise they claimed it was a new build!... out IFA double checked this but the mortgage companies surveyors are sticking by their guns as the property had a lick of paint in each room, new carpets, a bathroom and kitchen fitted whilst no one was in residents there. This has meant that our original mortgage is now null and void as new build properties can only have a max 75% mortgage according to the our original proposed lender which we were not offering (not far off, but no cigar!).... we can get another mortgage but this means that things will be much tighter than is comfortable (we will need to "borrow" (gift) more from our family and have less income spare for essentials each month) and as I have a young family to support and the property is clearly not a new build and has just had what anybody moving in would renovate I find it completely ridiculous that they are doing this!

    Is there a loop hole a can get through to get our original mortgage?!... can we go on a tracker mortgage for a period of time and then fix after a while when the bits and pieces they say have made it a new build have aged so their claims are negated? Any advice welcome as we need to go quickly with this!!

    Thank you!!!!!

  • #2
    Re: Survey states new build, loop hole?

    If the lender is just classing it as new build so it can reduce the loan to 75% then that is their perogative.
    However, it occurs to me that the lender is saying it is new build so you will buy using the Help-To-Buy scheme, where the government contributes 20% and you 5% of the purchase price.

    But as you say this home can never be regarded as a new build and certainly does not qualify under the scheme rules!

    Moreover, if mainstream lenders are adopting such practices it is tantermount to fraud!
    You should ask your solicitor to check it out and tell your MP.
    Perhaps you could suggest to the lender that if they insist that your home is a new build then you will be report them to the FSA and complain to the financial ombudsman.
    My guess is if you do they will reconsider.
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