Survey states new build, loop hole?

[indigo_child]

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 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!!!!!

[mariner51]

Didn't the Chancellor offer a mortgage guarantee for diff up to 95% for 'new builds' only.

Not sure of start date, but play the system. Apply for Govt guarantee and when rejected becuase it is not a new build, mort co will have to offer mortgage on 1930s property.

Was it a maisonette in 1930s or a recent alteration?

Otherwise, shop around, someone may want your business.

[indigo_child]

from digging around on other sites and help from other forums im gathering that its being classed as a new build flat because its leasehold and was vacant when it was painted etc, which is ludicrous... and from what ive seen, there are 2 kinds of new build.... a new buy which is in fact new and the above rule i would have thought applied... and a new build.... a term invented to imply an older property is magically regenerated when in reality its had a new kitchen etc. what a load of rubbish!

 

and yes it has always been a purpose built maisonette. we do have another mortgage lined up but it will mean steeper payments made over a shorter time frame with a larger deposit.

 

thanks!

[indigo_child]

just read up on the govt scheme.... the property wont qualify as it has to be a new build from a registered developer... i think the not new build help kicks in next year...

[Steve__M]

I believe there was a lot of mortgage fraud relating to certain types of property (in particular, but not exclusively, new builds) where the property was basically being sold for over-the-top prices - often for fraudulent purposes (e.g. the buyer was fake and would disappear, or the buyer was offered large financial incentives and the high headline price was to pump the market, or the properties were being sold to mugs caught up by the buy-to-let fervour).

 

Mortgage companies brought in rules such as this to protect themselves should properties not be worth the supposed purchase price.

 

Anyway, it's great to hear that Osborne has decided to forget all tht ancient history and will now line the property developers' pockets with tax-payer backed, high LTV mortgages. Surely nothing can *possibly* go wrong.