New Build Apartment max LTV

BigBumpaGirl

Can anybody tell me which mortgage providers (if any) are prepared to lend over 75% for new build apartments? I know that the Halifax does, but do not want to limit my options to one lender.
I am currently saving for a deposit and need to know if I will need to save the full 25%. One builder is also offering to pay a 5% deposit although I will probably ask them to reduce the value rather than pay a deposit as I get the impression that not many lenders accept them. If however anyone out there knows of anyone who does accept could you please provide names?
As for my background I know how much I can borrow and was actually quoted a 90% Halifax deal from a mortgage broker, however whilst I can cope with the additional fees, the monthly repayments were a little too high for my liking, hence I have decided to save for a larger deposit.
Any help much appreciated.
Thanks

medic1978

I think most lenders only offer 75-80% LTV on new build apartments.

There is a reason for that though...

They are overpriced more than any other type of property
Nobody wants them
High service charges, especially after the first few years
Hard to get rid of in any type of market, impossible in the current one

I would stay clear and buy a different type of property

inca_2

They are currently proving very difficult to re-sell, they are no longer a novelty, they are everywhere, I have a few friends who have been trying to sell theirs for 2 years now, they are actually asking for less than they bought it for and still having no luck. They have been notoriously over-priced in many instances which has caused lenders to limit the LTV they will offer. If this is really the property you want then I would definitely get the developer to drop the purchase price rather than accepting any offers from them. You may well find that once it comes to your mortgage valuation it gets down-valued, obviously I can't say it definitely will but all of the valuations I've had recently on new-builds have been, and quite significantly too.

BigBumpaGirl

medic1978 wrote: »

I think most lenders only offer 75-80% LTV on new build apartments.

There is a reason for that though...

They are overpriced more than any other type of property
Nobody wants them
High service charges, especially after the first few years
Hard to get rid of in any type of market, impossible in the current one

I would stay clear and buy a different type of property

A new build suits my individual circumstances, and I do not plan to move any time in the near future. Could you let me know if the points you have listed also apply to new build houses?

SouthCoast

I know of a luxury, designer, executive [strike]flat [/strike]apartment in a gated community that was sold new in 2003 for £200k. It has been empty for 3 years and is currently priced at £180k.

P.S. Maintenance charge is £2,000 p.a.

Leon_W

In this market I'm afraid beggars can't be choosers.

The fact is that nobody will want to lend you any money whatsoever. You have to chose the path of least resistance and not wanting to "limit yourself to one lender" is neither here nor there.

These days you have to be content with what you are offered and if the rate isn't that bad then that is a bonus.

Regards

katew87

Ive just put an offer down on a 3 bed detached new build on a 75-25% share from ac lloyd. Halifax and Nationwide are the only mortgage companies who will touch this scheme, other mortgage providers like Abbey and C&G will only do 85-15% share.
Hliafax are doing a good rate at the moment 5.79% fixed for 2or3 yrs with 995 fees.
Good luck x

Jonbvn

BigBumpaGirl wrote: »

Can anybody tell me which mortgage providers (if any) are prepared to lend over 75% for new build apartments? I know that the Halifax does, but do not want to limit my options to one lender.

Thanks

Please rethink your strategy, which at present is a quick guide to debtors hell,,,,,,,

ad9898_3

katew87 wrote: »

Ive just put an offer down on a 3 bed detached new build on a 75-25% share from ac lloyd. Halifax and Nationwide are the only mortgage companies who will touch this scheme, other mortgage providers like Abbey and C&G will only do 85-15% share.
Hliafax are doing a good rate at the moment 5.79% fixed for 2or3 yrs with 995 fees.
Good luck x

Why ?, 100% mortgage in another guise.

BigBumpaGirl

Thanks for all the replies. After careful consideration I have taken on board all of the cons of owning a new build (many of which I have already heard), however I have not altered my decision. I have however decided to save the full 25% deposit and wait 12-18 months for the market to settle.