Barratt Dream Start Mortgage??

Cat695

maybe its not a popular as you think it is?!

hethmar

If you are really a trainee mortgage advisor, shouldnt you be asking your line manager what he/she normally does with this sort of scheme or ringing round every lender in your books? Hmm, may be not the right career for you? Or anyone at the moment.

brit1234

Wake up. You are effectively asking the banks to lend you 100% mortgage on a newbuild. Have you not heard of this credit crunch caused by banks over lending on over priced properties to people who couldn't afford them and who put little of their money down if any at all.

The British banks were almost broken because of stupid deals like you want. If you can't save up your own deposit then you haven't the responsibility to buy.

I recomend to any one stupid enough to consider these schemes, don't. You are take a 100% mortgage and techically going straight into negative equity. That means when your mortgage deal runs out you will have to pay a far higher interest rate as you will be forced onto the Standard variable rate and risk repossession. :mad:

LandyAndy

Remember Barratt don't give a stuff about the 25%. I bet they are even making huge provisions against it in their accounts from day 1. All they want is to get their hands on the 75%. Any of the rest of it they get back is bunce. I'm astonished a trainee mortgage adviser can't work this out for themselves.

longers

CSWB wrote: »

Hi there

I have a question for all those who have bought a new-build property via this scheme......

Who did you take your mortgage out with for the 75%? I am having difficulty finding a lender who will accept the 25% deposit that Barratt pay as a 'proper' deposit.

Thank you!

I appreciate that you are still training but this is the last place you should be asking this type of question! Brokers get enough grief as it is (sometimes justified), without being made to look completely without a clue! Do you not have a supervisor or even another qualified Broker in the office who could have helped you with this??

Anyway, no lender will accept a 25% gifted deposit from a developer. You will be lucky to have 5% accepted and even then, the amount of the gift will be deducted from the purchase price and then borrowing will be based on the lower figure (hopefully you will have learnt that lenders based the lending on the lower of the purchase price or value).

Gifted deposits were used to disguise the true value of the property e.g. a purchase price of £100K with 25% gift really meant that the property is actually worth £75K. Unfortunatey many purchasers are no discovering this to their cost, with further falls to come (new build in Thamesmead anyone!!). As had already been stated, anyone who cannot show that they can save and are willing to commit some of their own money towards a property purchase, will struggle to obtain a mortgage for the forseeable future.

Please don't take this the wrong way but I hope whoever has employed you doesn't let you near a client for while!!

ad9898_3

More like 'Barratt Nightmare Start Mortgage', they really are getting desperate aren't they.

Avallon_2

oh !!!!!!. I wish people would get off their hobby horses. The OP has asked for very specific advice, so unless you can answer his question, please stop polluting this thread - it's a nightmare to plow through.

LandyAndy

Avallon wrote: »

oh !!!!!!. I wish people would get off their hobby horses. The OP has asked for very specific advice, so unless you can answer his question, please stop polluting this thread - it's a nightmare to plow through.

:rotfl: :rotfl:

Are you the first Barratt Dream Start [STRIKE]victim[/STRIKE] customer to raise their head over the parapet?

I think longers has told the OP all he needs to know.

The rest of us will post what we like, where we like, without reference to you, thanks.:j

LandyAndy

Avallon wrote: »

oh !!!!!!. I wish people would get off their hobby horses. The OP has asked for very specific advice, so unless you can answer his question, please stop polluting this thread - it's a nightmare to plow through.

I've reread your post but can't see your answer , or are you just a bit more of the pollution?

longers

Avallon wrote: »

oh !!!!!!. I wish people would get off their hobby horses. The OP has asked for very specific advice, so unless you can answer his question, please stop polluting this thread - it's a nightmare to plow through.

I would like to think I answered his question as best I could, within the confines of a forum which I believed is geared towards people sharing experiences/opinions on the housing market, rather than trainee mortgage brokers looking for technical information on how to place business (which is the job of their supervisor). However if you want an explanation as well, here goes:

Gifted deposits were an integral part in the over valuation of new build properties. As I already said, the gift simply disguised the true valuation of the property (why do you think since 1st September, Surveyors have had a legal duty to disclose all incentives to the purchasers Solicitors and subsequently, the mortgage lender!!). Developers enticed buyers with white goods, carpets etc, however using my example ,which is not unusual, it would have to be a gold plated fridge, cooker and dishwasher to be worth £25K!

There were ways around it, which I will not to go into here. Mainly because they were at best unethical but also, they cannot be used now anyway. So for the benefit of the original OP, you will not get any lender to accept a 25% gifted deposit anymore. You may get 5%, but you will need to do your own research as to wether borrowing will be based on the net figure (i.e. purchase price less the discount) or, if it will be accepted if the purchaser also puts down at least 5% (there you go, I should charge you for that!)

Happy Avallon??