Mortgages for New Builds

nanders

Hi

Does anyone know of any good mortgatge rates for new build houses? Fixed or tracker considered.

I need to loan on 90% LTV but could stretch to 85%.

Any advice greatly appreciated.

Thanks

Nathan

devon_guy

Halifax is probably your best bet. That's who offered me my mortgage.

Millburn_farm

we have been advised to go to our personal bank and (we are a farming family building a replacement house) the business bank; by a long term friend and finacial advisor; I assume that holds true for anyone building a new house; this we will be doing in the next few days; we do have about 40-50% of the build cost; so we are in a good postion

casper-ginger

There are very few lenders doing 90 per cent at the moment and even fewer doing them on new builds. RBS says it has one, but not likely to entertain any incentives from developers. HSBC just launched 90 per cent deals, but you have to be a customer and even so they might not do it for new build.

My advice would be to focus on 85 per cent. This opens up a wide range of deals, at much lower rates, many with no HLTV charges. We are in the same process and have discovered that switching from 90 to 85 could mean paying £250 instead of £2,000 in arrangement fees and up to £200 less per month on repayments!

If you are looking to buy from a developer, make all the right noises and put in a call to their recommended broker, which they use for part-ex etc. It does not cost you anything to ask, and they'll check whether what you are planning is feasible.

By outlining that fact that you can only buy on an 85 per cent deal, you might even get a discount off the house you plan to buy. Tell developer its the only way you can afford it and make them bend to you!

Good luck!

Of course, some lenders don't use broker - like the Yorkshire Building Society - which has just launched some amazing new deals and has outlined to us a great package at 85 % (incentives accepted, new build).

Millburn_farm

the Accountant today told my husband; go to the business bank, for two reasons
a) it's the business bank
b)The Clydesdale is about the best going at the mo in his opinion

betmunch

devon_guy wrote: »

Halifax is probably your best bet. That's who offered me my mortgage.

Sadly this is a complete non starter with the Halifax, just from the information given by the OP

Cheers

CM66

I've just been accepted with Natwest for 90% LTV at 5.99% fixed for 5 years with no arrangement fee.

I was pretty happy with that!