I’m buying a flat with my partner and we have a sale agreed on a flat. Great news huh?

Our financial advisor has started the process of applying for the mortgage but we’ve hit a stumbling block.

The type of construction is flagging up as a Large Panel System (concrete construction 60’s build etc). Therefore we can’t apply for a standard mortgage and have to look elsewhere. Apparently Halifax are happy to lend but none of the other big lenders are. This is obviously a concern as we want to get the lowest interest rate possible. His source of information is an area manager at Halifax who has access to a database of properties.

The estate agent is telling us we’re making a mountain out of a mole hill. He’s also saying he’s never heard of any issue in securing a mortgage on this block of flats. He’s offered to do a bit more digging.

Is there anyway I can independently verifying what i’m buying before applying?

Suggest you speak to a local surveyor who is RICS accredited, they will be able to confirm based their local knowledge.

You can find someone local at http://www.ricsfirms.com/

Non standard construction like this can be a problem. There’s an estate of similar sounding flats near us, lovely big flats but construction can cause problems with damp and condensation.

When doing an RICS course a while back we were warned that the big lenders may not accept them, so you may end up having to borrow with smaller more expensive lenders.

This does make them cheaper to buy due to problems getting a mortgage. It can also make them popular for cash paying BTL landlords who can charge lower rents and may attract a certain type of tenant. You might want to spend a couple of evenings around the area now any local “yoofs” feel it is warm enough to be out and about.

He’s also saying he’s never heard of any issue in securing a mortgage on this block of flats.

He would say that – if you’re having trouble getting a mortgage so will a future purchaser when you want to sell in a few years time. Start looking for somewhere else.

These the ones that need pulling down with depressing regularity due to them being thrown together with little/no care and using the cheapest materials they can get away with?

In situations like this you need to get it very, very cheap or buy something else. Don’t let emotions take over.

Don’t buy it.

Think of trying to sell it in future if nobody will provide a mortgage (been there, done that)

You are buying a flat – chances are you will sell it again in a few years and move up the ladder. If you have an issue, so will someone else. Don’t listen to the “advice ” of anybody who has an interest in selling it to you.

walk away.

Your mortgage adviser is the guy who knows each lenders criteria and is working for you, not the estate agent who wants shot of the property and his cash.

As already said, if you have issues getting a mortgage so will buyers further down the line…I’d walk away.

He’s offered to do a bit more digging.

Also known as “make stuff up”. Especially in estate agent speak.

I wouldn’t give up just yet. The plans from when the block went up are likely at the local archives, but if it’s a big block or one of an estate, most of the local surveyors will be familiar with them already and should be able to tell you what they are in a phone call rather than having to survey again. Mortgage wise, ask the neighbours, most of them will have one, and meeting the neighbours in advance is never a bad thing.

Your mortgage adviser is the guy who knows each lenders criteria and is working for you, not the estate agent who wants shot of the property and his cash.

As already said, if you have issues getting a mortgage so will buyers further down the line…I’d walk away.

This. You don’t honestly trust a single word the estate agent says over the lender do you? Look at the incentives. EA lies to you and gets his commission – any longer term issues not his problem. The lender, however has your debt booked as an asset and needs you to repay that debt so they get their full return on that asset… there’s a risk for them based presumably on empirical evidence that this kind of property will turn into a bad debt… hence their refusal to lend against it.

Banks may not be nice people but they’re not idiots – they have profits to make. EA’s however are almost always liars – their financial incentives encourage it

The estate agent is telling us we’re making a mountain out of a mole hill

Tell him to get bent and go and find somewhere else to live.

Interesting,

Estate agents, recruiters and bankers look like the most villified people on STW. Rarely a good word…

IANA / EA / R / B ….

Disappointing as it may be, the walk away advice may be the best. If your struggling now, add 5 – 10 yrs when its tattier and all the regs have tightened up…. whats it going to be like to move on when you want to get a bigger place… ?

Wow! Thanks for coming back to me with all that.
Going from the general consensus you can guess what way I’m leaning.

FYI the flat isn’t one of those old grey damp flats. It’s actually quite nice, so that’s what makes it annoying. I just wanted to check and see if there was another quick way around it.

The sale price agreed also doesn’t reflect what we’ve found out since…
I think we’ll start a fresh search thanks again

Nothing to add other than it is good you have heeded the advice on here.