Switching lender while construction defects are unresolved?

Paul F

New Member
Messages
1,456
Hi,

Apologies if this has been discussed before but I couldn't find anything in the forums.

I'm an owner-occupier in an apartment in a block. I'd like to switch lender to get a better rate but the development is affected by construction defects. The process to get the developer to pay for (some of) the remediation works is dragging on and I can't see it being sorted any time soon. For what it's worth, my own apartment seems to be unaffected.

Does anyone have first-hand experience, or anecdotes, of being in a similar situation and switching lenders? Will all lenders flat-out refuse, or will some give a mortgage if the LTV is low enough?

Thanks
 
It'll come down to whether or not the valuer notes it. If they are any good at their job they will, and then the lender won't touch it without assurance that their security is good.
Then you'll incur the expense of showing you're not affected, which could involve engineers reports for example. Which don't come cheap.
 
Thanks for the replies. I'm thinking I might approach the new lender and ask them what their policy is with respect to lending against apartments that have defects.
 
Does anyone have first-hand experience, or anecdotes, of being in a similar situation and switching lenders? Will all lenders flat-out refuse, or will some give a mortgage if the LTV is low enough?
Just bumping this thread to ask if anyone in a similar situation has tried to do a switch. Were you successful?
 
Back
Top