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Original poster

Mortgage offer!

30 replies

Megan96x · 02/06/2020 23:00

Good evening!

Myself and my partner have finally received a mortgage offer after trying to obtain one since February.

My partner has a residential mortgage with his brother (partner does not live in the property). There are no intentions to sell this property, and no money from this property will be used to fund our deposit money.
We discussed this with our mortgage advisor etc, and answered questions regarding this property from the mortgage lender.
All seemed to be going well, and we finally got the offer!

Our solicitor today pointed out that one of the conditions of the loan being provided, is that the property my partner and his bother have is sold or the mortgage is paid off in full prior to completion of the property we are trying to purchase.

Big shock!

Has this happened to anyone? Could this be a simple mistake as we had provided information and told them we would not be selling..

Is it easy to dispute a condition in a mortgage offer?

I’m so worried the sellers are going to become irritated with us, and they may pull out!

OP posts:
NotSuchASmugMarriedNow1 · 02/06/2020 23:21

I'm sorry this has happened to you . Your the fourth person I've heard of recently whose had stupid restrictions put in mortgages. It's getting silly now

When you say you've been trying to get a mortgage since February have there been prior problems then?

Original poster
Megan96x · 03/06/2020 08:43

Ah thank you. It really is becoming almost impossible in the current climate to obtain a normal mortgage!

We were accepted for a mortgage with another company, but the house was classed as ‘new’ and so didn’t meet their criteria.. and so they pulled out.
Then when the lockdown was put in place, most lenders completely removed their higher LTV products which meant we couldn’t apply for one at all.

We increased our deposit and finally got an offer - but now this! :(

OP posts:
Whymustyoubringinthebirds · 03/06/2020 08:47

It could be a simple error, I am a mortgage underwriter and the removal of that standard condition is easy to miss, if it has been assessed and presented correctly then it's not an issue to remove it
Get your broker to go back to the lender asking them to remove the clause

Original poster
Megan96x · 03/06/2020 09:01

Well that’s certainly given me some confidence! Hopefully all is well and the lender will remove the clause for us!
I did find it a little odd given we had discussed this. Our mortgage advisor did make contact with the lender yesterday, so fingers crossed we will hear back today!

OP posts:
AwwDontGo · 03/06/2020 09:15

Sounds promising. Good luck.

rosie1959 · 03/06/2020 09:26

Talk to your broker

Original poster
Megan96x · 04/06/2020 12:35

@Whymustyoubringinthebirds I was wondering if you could offer me a little advise please?

The lender has come back to us saying that we must convert my partners current residential mortgage to a BTL and issue them with the offer from the lender.

We are against time here as the sellers are desperate to sell, so we have gone back and asked if we can provide them with a consent to let offer on the residential mortgage already in place.
Do you think this would be enough, or so you know if this has been done before?

Our broker seems to think so, but tbh she’s given us false hope in the past

Any advise is appreciated!!

OP posts:
ScarfLadysBag · 04/06/2020 12:37

We did what you are trying to do with consent to let on the first residential property with no issues. But I suspect mortgage companies are a bit more squirrelly right now so it might depend on what they are willing to offer.

Original poster
Megan96x · 04/06/2020 12:46

@ScarfLadysBag
I have read online and it does seem a lot of people have managed to do it this way. Hopefully they will accept it for us, and we can move forward.
If not it may be that we have to look for a new lender but highlight that this is what we are doing on the first residential.
Fingers crossed!

OP posts:
GreyGardens88 · 04/06/2020 12:51

Do you have a mortgage broker? They should have discussed all this with the lender and yourself before the offer was produced

ChicCroissant · 04/06/2020 12:56

I think that is a standard clause because it is usual to have only one residential mortgage for your main residence and obviously the new house is going to be his main residence.

You should speak to your broker for advice, they should be sorting this out for you.

Original poster
Megan96x · 04/06/2020 12:57

@GreyGardens88
Our broker assumed that we were selling the property even though we had told them we wasn’t.. the fault lies with them really

OP posts:
Whymustyoubringinthebirds · 04/06/2020 12:57

@Megan96x I personally would think that would be enough, the bank I work for wouldn't ask for anything like that, is is a building society you have applied too? Then tend to be stricter

ScarfLadysBag · 04/06/2020 13:00

We were with Halifax but we basically just had to say we intended to rent the first property out and our solicitor wrote a letter saying what the estimated rent would be in his professional opinion (and I think that was just for affordability purposes).

I don't think they even asked for proof of consent to let (but our first mortgage was with them anyway so maybe they just cross-referenced). We did have to prove we could cover the old mortgage and new, though.

We recently switched to a BTL and they required a lot more info such as the tenancy agreement, EPC certificate, etc.

ScarfLadysBag · 04/06/2020 13:01

I'm guessing they will need to run affordability checks again if you're going to have two mortgages at the same time, as they will have offered based on you having just one, by the sounds of things.

Seeingadistance · 04/06/2020 13:02

Your mortgage broker doesn’t seem to be very good, to be honest. You really shouldn’tbe in this position at this stage, with your solliciter noticing this very major problem.

Residential mortgages are for the property you live in. If your partner doesn’t live in the house he currently owns with his brother, and has no plans to live there again, then he should either sell or convert to a BTL mortgage.

Consent to let seems to intended as a short-term solution only, and not really for your situation.

ScarfLadysBag · 04/06/2020 13:05

Is his brother resident in the property?

CayrolBaaaskin · 04/06/2020 13:05

I have a number of mortgages but only one residential mortgages (rest are buy to let). Unfortunately it’s usual for banks to only allow one residential mortgage. Can the mortgage with the brother be redeemed or remortgaged with a buy to let?

ScarfLadysBag · 04/06/2020 13:11

It sounds like your broker has messed up big style here as it could potentially be quite complex, especially if his brother is living in the property.

Whymustyoubringinthebirds · 04/06/2020 13:15

Yeh it does sound the fault lies with your broker here

It sounds like the case will need to be re-assessed with the property

Original poster
Megan96x · 04/06/2020 13:21

@Whymustyoubringinthebirds
The bank is BOI U.K., im so confused with it all tbh!

Thank you for your help

OP posts:
Original poster
Megan96x · 04/06/2020 13:41

@ScarfLadysBag

I think our only other option will be to apply for a mortgage with the lender of the current residential mortgage - that way we may stand a bit more of a chance.

The current residential mortgage cannot be changed to a BTL as my partners brother does actually live in the property..

OP posts:
Seeingadistance · 04/06/2020 13:42

Did your partner ever live in the property with his brother?

Whymustyoubringinthebirds · 04/06/2020 13:48

BOI is a small lender in the grand scheme of things, not that that adds anything really

Another option is to switch to one of the bigger lenders if you meet the criteria if you don't want to switch to a btl mortgage (if there would be an erc to pay) as I am sure all of the top 4 lenders will take consent to let (of they even ask)

Whymustyoubringinthebirds · 04/06/2020 13:49

Sorry just seen your other update, is the brother going to continue to live in the property?