The Dream Start 'Deposit'

gechman

On schemes such as the Barratt 'Dream Start' 75/25, do many mortgage lenders actually see the 25% as a deposit or do you have to use a specialist or the one specifically recommended by them? does anyone have any experience of using HSBC with this offer?

Thanks!

betmunch

In my experience with Barratt you will end up using their mortgage advisor or they wont sell you the house!

Bunch of cowboys!

And yes, I am bitter!

Cheers

unite79

Wait till the Valuation comes back, to find the flaw in this scheme.

Nationwide incidently treat it as a deposit, allowing you to have lower ltv products - But the valuation is based on second hand value!

unite79

Which is probably why Barratts and the like insist you use in-house mortgage arrangers - So they can try to shoe you in!

herbiesjp

Have a look at these schemes, they might be able to help:

http://campaigns.direct.gov.uk/ontheladder/index.html

You have to use the panel IFA for certain aspects of the purchase, but you can use any mortgage adviser you wish - although they really try the hard push, even going as far as not doing any of the paperwork necessary for you to proceed with the scheme if you chose your own adviser. (talking of experiences with my clients)

gechman

Thanks for the replies!

So is the consensus of opinion that I can use HSBC if i badger Barratt enough and dont give up?

betmunch

First check if HSBC will accept the Scheme.

Then you will have to really dig your heals in to get your way.

I lost a client to Barrett because they said if she didnt use their advisor then they wouldnt do the part exchange they offered her originally!

Cheers

PS. I really hope you get your own way

Peelerfart

Reminds me so much of the old Barratt homes jokes

gechman

The man from HSBC he say no! They see the 25% as a price reduction not a deposit

Oh well!

Wabby

unite79 wrote: »

Nationwide incidently treat it as a deposit, allowing you to have lower ltv products - But the valuation is based on second hand value!

They do. And this worked in my favour - Getting 10% of the asking/previously agreed price (Due to the lower valuation of the 'new' home) :beer::beer:

dunstonh

Nationwide incidently treat it as a deposit, allowing you to have lower ltv products - But the valuation is based on second hand value!

Which is effectively what it is. They keep the price higher and are only giving you back what they have overpriced it for. This is why lenders dont like new builds when house prices are falling.

New builds lose about 15% the minute you buy it. If its already overpriced and you borrow 100% of that higher price then are in negative equity straight away. Its not good lending. Not so much a problem when house prices are going up as it only takes a couple of years to get out of it but when prices are going down (and another 15-30% is still possible) then its going to crucify a lot of people buying.