HELP NEEDED ASAP: Mortgage refused from HSBC due to new build..!!

maxkpp

Hi all, im currently under pressure after being refused of HSBC mortgage as the property is a new build (unless I am willing to pay 25% deposit, which im not prepare to do so). The worst thing is the news came after at least 95% of the whole process is done (credit search, solicitor, etc) even after both me and solicitor received the offer document. Anyway, I m not trying to argue who is right or wrong as it wont do me any good. Bottom line is, I was given this deal: Graduate Mortgage with 95% LTV, with tracker as much as 6.19% as bank with them (applied 1 – 2 weeks ago). I was wondering if there is similar deal out there, or if there are any mortgage advisor who can help me out sorting out this mess, ASAP, as I HAVE to move from the flat im currently renting by the 26th of July (Madness..!!). I have all documents ready. Pls let me know.

Ta

herbiesjp

At 95% with a New build you are going to be struggling

There might be one or two lenders that could help, but it would depend on the whole scenario

minimike2

You wont get 95% on a new build im afraid (from what I can find, someone correct me if i am wrong)

. Best I can see is 90% with Halifax but the rate is not great (7.14% 3 Yr Fix £1499 fee).

Even at 85% your options are limited.

maxkpp

Okay, what sort of scenario are we talking about? I am a FTB, I have all required documents and decent financial background, at least I was able to go through most of the HSBC system, well apart from that new build thingies obviously..

Cazza

The one and only person currently available I can think of is Halifax. Nationwide might be worth looking at, but they currently only have 90% rates available via brokers, you might find a 95% rate if you go direct but it WILL get downvalued on the survey and they might be max 90% on newbuild anyway.

For your information, Cheltenham and Gloucester max 80%, Abbey max 85% on NB houses and 75% on NB flats. RBS max 85%, Alliance & Leicester 70% on NB flats, 90% otherwise.

Hope that helps!

(BTW, when I do have clients actually buying houses :rolleyes: I specialise in the NB market!)

minimike2

Just looked on thier (Halifax) website, they have a direct product at 95% Base +2.39% For three years £299 Fee.

You would have to open a Halifax account and have your salary paid into it as a condition of the mortgage. They would also charge you a higher lending charge. It almost makes it pointless.

dunstonh

I HAVE to move from the flat im currently renting by the 26th of July (Madness..!!). I have all documents ready. Pls let me know.

That isnt going to happen so you need to make arrangements for alternative accommodation.

maxkpp

what about the non bank lender, or perhaps lender that available exclusively via broker only? I have done quick research, the options for me are either pay another 5% deposit (end up with 10% and get at least not far different interest to what i have been offered), get another property and back to HSBC (which in this case almost like going back from square one), or stick with 95% LTV (if there is available) but put up with highest interest and all those !!!!!!!! fee...suggestion please lads?

minimike2

There just arent the products at that LTV on new build im afraid. I had a look again and that Halifax one I mention above is all that i can find at 95%, so unless any of the other brokers can find something im afraid thats it.

Can you raise the extra 5% from family?

herbiesjp

Nope

Thats the one I was thinking of

maxkpp - I think you are going to have to make a choice here, either way its not going to be one you like

lisyloo

suggestion please lads?

Well I'm a ladette :-) but how about ditching this and continuing to rent?

Are you committed to the deal (exchange) or can you pull out with a small loss (new builds often ask for a relatively small resevation fee).

House prices are failing and there are some forecasts of large falls.
We are in the middle of a credit crunch, gas going up 66% (possibly), petrol up, food up.
I know that no-one has a crystal ball but I cannot see how anyone can forecast a posistive scenario at the moment.

So why not pull out and find somewhere to rent?