Any 90% LTV mortgages available for New Build Homes?

Andy_Ash

Can anyone advise of lenders that specialise in New Build Mortgages? We have been happily saving a deposit towards our dream home (which we have found!) however there is a double whammy which puts it out of our price range for now. First being that, as a new build, any lenders that I have enquired with only offer up to 85% LTV (we're happy with a 10% deposit) and the house we've seen will be subject to stamp duty, meaning that we have that we have to put to the side as well. We could push the whole thing home if we could find a 90% LTV lender. Ideas?

dwsjarcmcd

Sorry Andy, don't think that any lenders will do 90% on new builds. Best way is to try to get the developer to drop the price so that your LTV is less than 85%

wymondham

I think this is now the norm as newbuilds are losing value quickly, lenders have reduced the LTV they are willing to give out. It's quite an eye opener as it shows how much they think the value will drop.

hcthomas

Just trying to buy a new build myself. I already have a mortgage on another property, which I am going to rent out rather than sell, due to the market. I have found a tenant so all is well and good there.

I have managed to get Wimpey to offer me a 5% deposit incentive, to help me to get the 'magic' 85% LTV. Now it turns out that many mortgage companies won't touch me as they don't like the vendor gifted deposit scenario! Also they hate the fact I already have a property and the my new house is to be a new build... I've found that Nationwide are doing the 6.9% on a repayment mortgage, fixed term for 3 year with £999 fee...not an amazing deal, but beggars can't be choosers! Perhaps you could try them?

Obviously I could do better if I could get to 80% LTV, but just raise that much deposit...

Conrad

I just put one through Saffron building society at 90%, but it is case by case so I cant guarantee they will assist you.

Also note that lenders are not inclined to allow gifted deposits or other developer incentives as these have the effect on creating false value (ie - if you are repossessed the same incentives are not there to sweeten the deal for the incomming buyer so his notion of value is obvioulsy lower than yours would have been)

hebe

You might be more succesful asking the builders to pay your stamp duty. Also see if they can bring the price down a bit more.

Tiddler_2

Halifax are also still doing 90% on New Builds (even with 5% deposit paid by builder - providing it values ok) and will still do this on apartments aswell.

Rates are quite high though - over 7% and looking at 5 year fixed rates as the only option.

Andy_Ash

Thanks for that. I've checked safffron out but there website has only one mortgage available - so perhaps they perfer to deal with IFA's rather than Joe Public? Similarily, I can't find any reference to New Build Mortgage deals on the Halifax website, so I guess i'll have to call them - oh the joy! The price has already dropped on the property I have in mind quite dramatically, and there has been an offer made but lower than the asking price, so I'm guessing the price will only come down another few 1000 at most... So its back to the good old fashioned 'saving' method for a few more months... I think all this puts me in quite a unique category - someone who actually would like to see the recession hold on for a little while yet! (just until I get my dream home that is)... somehow I don't think there is much doubt that it won't.

luckyfool

Halifax and RBS

JFergy

Does anybody have any current views on this.

I can only find Natwest atm, 90% at 6.49 percent. Seems my best bet...

Any info appreciated

Conrad

The valuers opinion is upper most with newbuilds. I noticed some are saying RBS and Halifax, but it's very much case by case. I've recently found Halifax restricting to 75% on some new build developments and they wont take builders cashbacks.