I can't believe this has just happened :-(
So, we bought a bungalow (£360k) on a decent sized plot - no mortgage and have £218k towards the build so thought we ought to get a small mortgage of £100k as costs had risen etc. Supplied statements for all our accounts including one we have with a bank in the US, everything short of my inside leg measurement. We estimate when the house is complete (4 bed 3 bath 2 storey 2500 sq ft) will be worth £850,000-£875,000.00. We have $250k in the house in the US and £500,000.00 in equity in our buy to let portfolio,
After months of hurdles - objections from a neighbour, right to light reports, party wall agreements (even though there is more than 3 metres between properties), planning officer stuck in India (then apparently walking or being sacked), to be followed by another who walked, we finally got planning approval (after I pleaded our case at a council planning meeting) with demolition to start Monday and building commencing next Thursday.
Boom - last night the broker mailed to say the lender - Newcastle - had changed their lending critieria and reduced the amount they would lend from £130k to £54k. but instead of showing £218k in our account we now have to show £299k which we don't have and are at a loss where to turn to.
Just told my wife and felt she would cry - we are both just gutted and lost for words.
Any suggestions at all ? The broker (Buildstore) said that apparently Newcastle are the only self build lenders - The irony is we now have income of £9,000.00 a month coming :-(