Down in the dumps -ADVICE PLEASE?

Sneaker

Edit..............

luckyfool

There is no way the lender is going to treat that all as a "real" deposit. Generally they will accept 5% builders deposit, once you include your own £10k that would give you access to 90% deals. Effectively lenders will probably treat the purchase price as approx 181k, with a 9k builders deposit and a further 10k from yourself giving a mortgage of 162k on 181k. It sounds like the mortgage advisor has not really explained things to you properly, I would give him/her a call and confirm that the builders deposit is definitely acceptable to the lender he is recommending and exactly how it is structured. If you have any concerns about the advisor and their advice then try speaking to a 2nd broker so you can compare them. A mortgage is a major financial committment and you want to be sure you have faith in whoever is dealing with things on your behalf.

Sneaker

Thanks, I shall go back today.

HelpWhereIcan

10% should be enough

Sneaker

Thanks :j :j :j :j :j

Sneaker

Does anyone know if A&L or C&G will accept more than a 5% deposit form the deveoper please?

tomstickland

I'd advise going to see an independant mortgage advisor - there are scores of lenders offering rates similar to the A&L value you have.

HelpWhereIcan

Scottie, have just read this thread 'properly' for the first time.

AFAIK, the max builder deposit that most lenders (including A&L and C&G) is 5%, and has been said before by lucky fool, I do not see them accepting the 'deal being stacked' (purchase price etc) other than described by lucky fool.

One alternative is a certain lender who will accept a 10% builder paid deposit (as long as you are putting in 5% of your own). The rate payable is higher, but there are no tie ins so once the purchase has gone through you can remortgage to a lower rate using all of the equity you have.

However, the best way would be to ensure that the purchase price etc are arranged as lucky fool has described. This will save you time and hassle of remortgaging in the near future and obviously get you the best deal available now. Threaten to walk and you may well get the deal back to something acceptable to the lender. Afterall, what difference does it really make to the builder? Enough for them to have to find another buyer?

Hope this helps

HelpWhereIcan

SCOTTIECTR wrote:

Thanks so you are suggesting that I ask the developer to list price as £181k and them disclose that they will pay a 5% deposit with me adding a 5% deposit too?
if you think this is the best then I will need to ring my FA ASAP.

thanks again.

Yes, this will be the way that is most acceptable to the lender and will mean that you can go for the A&L deal you want.

Sneaker

Thanks, just waiting to hear back form the MA, he said the agreement in principle was accepted and now just has to do the proper application.

HelpWhereIcan

Hi Scott

I would expect that your FA to have submitted your application online and for them to have received an answer (decision in principle) within 48 hours if not instantly.

Ask them if it has been agreed in principle and if A&L have approved the purchase price, deposit and loan amount mix that has been submitted. This will not take 5 days to get an answer on.

I suspect that your FA is talking about the mortgage offer (at least I hope they are with the timescales they are quoting). This involves the valuation and checking of payslips etc so will take that long, but if the valuation is all they are waiting for, youshould be ok.

If you have 8 days to exchange, do not be afraid of chasing the FA and asking him to be more specific about the progress of your application.

Calling A&L may be an option, but I would give the fa the chance to explain things to you properly.

Hope this helps