Mortgaes for new Builds

8086

I am interested to see if anyone is having problems remortgaging for a new build.
I am due to remortgage but have been refused because my house is under 24 months old. Why is this? And what can I do?

_Andy_

It may be because of the LTV (loan to value) - how much do you owe and (being realistic) what is the value of the property?

koexelek

Have you got an NHBC certificate or Zurich Certificate ?

If not, a lot of lenders won't be happy.

Some will accept an architects certificate as well though

8086

Thanks for the replys - My LTV is 90% the house has recently been valued at £122,000.
I have a NHBC certificate dated from April 2007 for 10 years.

herbiesjp

The 90% LTV is causing the problem

Most lenders will only look at newbuilds at LTVs around 75%- 80%

Have you seen what your current lender can offer - who is your current lender?

koexelek

I think it will be purely down to the loan to value then .

The lenders tend to feel that prices of new houses are likely to fall more rapidly than older ones.

8086

My current lender is Alliance and Leicester, I am due to go onto the SVR of 7.19% and wondering if this is the best I will get for now. I applied for a tracker rate at HSBC but was rejected and told to apply when the house is 24 months. Will it really make a difference in 6 months time?

Toughluck

as mentioend previously, your property is classified as a new build. no-opne wants to lend on them currently with a high LTV. Will A&L not offer you another deal?

8086

The fees to go for a new deal were high, specially if HSBC allow the mortgage to go ahead in 6 months. I was hoping I could get some gaurantee from HSBC for the mortgage I applied for to bein in April when my House is 24 months, but I have no reply and just wondered in the 24 month thing was an excuse.

_Andy_

The problem you'll have is that in the next few months the property will down-value even further, making the HSBC possibility very unlikely.

brit1234

Is there any way you can pump money into the mortgage to bring the LTV down to say 80%?

The fear for lenders is that many developers provided gift deposits for new builds but artifically increased the price to cover and more so. So these banks look at 90% LTV and think gift deposit and large scope for price falls putting their money at risk.