Linden homes refuse lender?

[Keewro]

Hi,

I am a first time buyer, I have received my mortgage in principle, however, after feeling like I have jumped through hoops, linden are now saying that they don’t accept my lender????

Can they discriminate between lenders? Why am I any different from someone else who uses a high street bank? Why should I be penalised because elf a couple of mistakes on my credit file from 5 years ago ? ( the banks wouldn’t give me a mortgage because of this ) .
Why does it matter to the developer?!?

Thanks in advance, I’m new to all this mortgage malarkey, but I’m tired of paying 1200 a month of someone’s else’s mortgage!

X

That’s really strange - I wonder if it’s because of valuation issues. Is your plot complete or are you buying off plan?

Who is the lender?

If it's an adverse credit lender, they tend to be an absolute pain... Professionally speaking; we avoid dealing with them when we can, so I wouldn't be surprised if other businesses had the same policies. Places like Kensington have an especially bad reputation for taking weeks to do things, random holds before the money is released, etc. It's obviously possible for delays to occur with a high street bank too, but it's a lot less likely.

If the mistakes on your credit file are 5 years old, you'll likely find a high street bank that will lend - that's a year away from fully dropping off, and even CCJs have a much smaller impact after 5 years, unless there's a lot of them. But it might not be your bank, and it might affect interest rates/affordability (although typically it'd still be cheaper than an adverse credit lender).

It matters to the developer because they have strict timelines that they like to meet on when you exchange and complete, and a difficult mortgage lender makes that much less likely to happen.

Thanks guys for your replies, yes it is a specialist lender, together.

It’s incredibly frustrating though, to feel like you’ve done everything asked , only to get told NO.

Are developers ALLOWED to refuse a sale based on the lender?

@Leftbutcameback buying off plan, won’t be ready until may , so I can’t because a lender is “slow” as the mortgage and contracts with have been exchanged, well before completion?

Are developers ALLOWED to refuse a sale based on the lender?

Yes, why do you think they wouldn't be? They're selling a product. They can discriminate however they like.

For them cashflow is everything - especially for end of year sales. June is often year end so that makes sense. They may have had a bad experience in the past. Up to you if you want to push them and try to hold out for your lender, it'll depend on how much they really need the sale.

If you're a first time buyer with no chain (I think so from your post) you are otherwise a good prospect in what is a tricky market where chains often fall apart, so I would just push really hard.

@GiltEdges are they not governed by certain “fairness rules” , there must be a boundary of what they can discriminate over ?

[quote Keewro]@GiltEdges are they not governed by certain “fairness rules” , there must be a boundary of what they can discriminate over ?[/quote]
They can't discriminate on protected characteristics (sex, sexuality, disability, etc). Your mortgage lender isn't a protected characteristic.

Keewro
@GiltEdges** are they not governed by certain “fairness rules” , there must be a boundary of what they can discriminate over ?
They can't discriminate on protected characteristics (sex, sexuality, disability, etc). Your mortgage lender isn't a protected characteristic.

Yes sorry, perhaps I should have been clearer. When I said they could discriminate "however they like" I didn't mean by acting outside the law, which could be the case if there was a protected characteristic at play. It's self evident that choice of lender wouldn't fall into this category, so that's irrelevant. Fairness doesn't come into it unfortunately.

They can do whatever they like (within the law as mentioned by op above). They can refuse you/your lender if they want to. Can you change lender to one they will accept? If not you may need to find a different house.

I usually wouldn’t suggest this but have you used their recommended broker? They might be able to point you in the right direction.