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  • FIRST POST
    • SAMFOB
    • By SAMFOB 21st Sep 16, 6:06 PM
    • 46Posts
    • 41Thanks
    SAMFOB
    FTB New Build Process?
    • #1
    • 21st Sep 16, 6:06 PM
    FTB New Build Process? 21st Sep 16 at 6:06 PM
    We are currently saving as much as possible for a house deposit, and could do with some guidance.

    I realise many people aren't fans of new builds, and that's fine. But we are very keen on them, and are hoping to get one in the near(ish) future.

    We know we need to save more, and hopefully significantly increase our income, but it's the process we're most concerned with.

    TL;DR
    Do we get a mortgage in principle first, then reserve on a new build, or vice versa? Basically, do we approach house builders first, or banks?
    At what point should we speak to a broker?
    Will a mortgage provider ever consider us, even if we save a high % deposit, if our income is still low?
    If we use the Help to Buy Equity Loan, at what point should we organise that?


    Any help or advice you can give on the new build buying process, or first time buyer tips would be very much appreciated.
    Last edited by SAMFOB; 21-09-2016 at 7:28 PM.
Page 1
    • kingstreet
    • By kingstreet 21st Sep 16, 6:11 PM
    • 29,642 Posts
    • 15,714 Thanks
    kingstreet
    • #2
    • 21st Sep 16, 6:11 PM
    • #2
    • 21st Sep 16, 6:11 PM
    Look at sites

    Speak to brokers to confirm HTB and mortgage affordability

    Decide on site and property type

    Get agreement in principle

    Agree price, incentives and make reservation

    Apply to HTB Agent for Authority To Proceed

    ATP issued in four working days or less

    Follow usual mortgage process with broker.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • SAMFOB
    • By SAMFOB 21st Sep 16, 6:14 PM
    • 46 Posts
    • 41 Thanks
    SAMFOB
    • #3
    • 21st Sep 16, 6:14 PM
    • #3
    • 21st Sep 16, 6:14 PM
    Look at sites

    Speak to brokers to confirm HTB and mortgage affordability

    Decide on site and property type

    Get agreement in principle

    Agree price, incentives and make reservation

    Apply to HTB Agent for Authority To Proceed

    ATP issued in four working days or less

    Follow usual mortgage process with broker.
    Originally posted by kingstreet
    Thank you, for your quick and succinct response. This is a perfect outline for us to work from. Thank you!
    • Lord Baltimore
    • By Lord Baltimore 21st Sep 16, 9:17 PM
    • 1,133 Posts
    • 1,147 Thanks
    Lord Baltimore
    • #4
    • 21st Sep 16, 9:17 PM
    • #4
    • 21st Sep 16, 9:17 PM
    And get a solicitor?
    The views expressed are my opinion, nothing more, nothing less.
    • SAMFOB
    • By SAMFOB 22nd Sep 16, 7:08 AM
    • 46 Posts
    • 41 Thanks
    SAMFOB
    • #5
    • 22nd Sep 16, 7:08 AM
    • #5
    • 22nd Sep 16, 7:08 AM
    Good point, at what stage should we engage with a solicitor, and do you have any recommendations about how to find one?
    • kingstreet
    • By kingstreet 22nd Sep 16, 8:09 AM
    • 29,642 Posts
    • 15,714 Thanks
    kingstreet
    • #6
    • 22nd Sep 16, 8:09 AM
    • #6
    • 22nd Sep 16, 8:09 AM
    Yes, sorry.

    You'll be appointing a solicitor so you can reserve.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • magicpork
    • By magicpork 22nd Sep 16, 12:57 PM
    • 49 Posts
    • 15 Thanks
    magicpork
    • #7
    • 22nd Sep 16, 12:57 PM
    • #7
    • 22nd Sep 16, 12:57 PM
    In my case, the developer asked me to appoint (or use theirs) a solicitor immeadiately after the HTB reservation was completed and my solicitors applied ATP from my local HTB agency.

    You'll pay 500 pounds (fully refundable) to reserve the property under HTB schema, pay 5% on exchange, and the remaining of deposit on completion
    • DCFC79
    • By DCFC79 22nd Sep 16, 2:23 PM
    • 27,199 Posts
    • 17,264 Thanks
    DCFC79
    • #8
    • 22nd Sep 16, 2:23 PM
    • #8
    • 22nd Sep 16, 2:23 PM
    Good point, at what stage should we engage with a solicitor, and do you have any recommendations about how to find one?
    Originally posted by SAMFOB
    Ask friends and neighbours you get on with for recommendations.
    Je Suis Charlie
    • kingstreet
    • By kingstreet 22nd Sep 16, 4:05 PM
    • 29,642 Posts
    • 15,714 Thanks
    kingstreet
    • #9
    • 22nd Sep 16, 4:05 PM
    • #9
    • 22nd Sep 16, 4:05 PM
    In my case, the developer asked me to appoint (or use theirs) a solicitor immeadiately after the HTB reservation was completed and my solicitors applied ATP from my local HTB agency.
    Originally posted by magicpork
    Solicitor details on reservation and HTB property information form have to be correct/complete so you need to decide who you are using before you can reserve/
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • hazyjo
    • By hazyjo 22nd Sep 16, 5:40 PM
    • 8,103 Posts
    • 9,796 Thanks
    hazyjo
    Advisable to use an independent solicitor, not the one they will probably try to bribe/force you use, prob in order to get reductions or freebies.


    They are likely to have the best interests of the developer at heart, not yours.


    Jx
    2016 wins: ESPA gift set; jumper; lip balm x 2; kitchen scales; perfume; shoes; theatre tickets; Champagne; books; After Eights; Diet Coke; Molton Brown duo; fish slice; travel set
    • gregsayer
    • By gregsayer 22nd Sep 16, 6:13 PM
    • 132 Posts
    • 79 Thanks
    gregsayer
    you don't ( and shouldn't) need to use their solicitor, but using their mortgage broker may make things easier... they will know the developer, and hence have experience with the HTB products from lenders (not all banks support the equity loan) and the broker will get their fee from the lender regardless.


    with new builds now, they wont budge on price, but will throw in extras, I got full carpeting / laminate, the rear garden turfed, the patio expanded and the bathroom fully tiled.


    developers like FTB's as your "proceedable" and even have chance of jumping the queue.
    get to a broker, armed with proof of your deposit, evidence of your income and outstanding debts and get an AIP on a HTB deposit, then walk into the developer with your £500 deposit


    have a read of https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-160216.pdf


    and make sure you meet the criteria.


    remember with the HTB Loan, you cannot own any other residential property, and after 5 years have to pay an annual administration fee.
    If you sell your house you will have to repay the same % as the loan, so if you borrowed 20% of a £100k house, then sold it for £110k, even though you borrowed £20k you have to repay £22k (or less if the house sold for less)


    you also have to remember any future changes to the mortgage or major works to the house has to be approved by HTB, who also have a final say in the sale value.


    having just gone through it, then helped my brother through the process, its not a bad process, and a good broker and solicitor should make it easy for you.


    feel free to PM me any questions


    Greg
    • kingstreet
    • By kingstreet 22nd Sep 16, 10:03 PM
    • 29,642 Posts
    • 15,714 Thanks
    kingstreet
    Thanks for that Greg.

    I took a call today and the potential purchaser was given no indication from her non-newbuild broker that;-

    lenders take the future cost of the equity loan into account at the outset

    the ground rent & service charges on the flat affected borrowing power

    some lenders limit newbuild cash incentives depending on your deposit for HTB Equity Loan cases

    where the completion date is over six months away some lenders are easier to get a new offer from than others.

    Newbuild is as specialised a mortgage market as that for contractors and adverse credit and potential buyers do well to remember that.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • SAMFOB
    • By SAMFOB 23rd Sep 16, 10:51 AM
    • 46 Posts
    • 41 Thanks
    SAMFOB
    Thank you all so much for your input. We actually don't know anyone but a couple of colleagues who own their own home, and no-one who's ever bought a new build before, so your advice is invaluable.
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