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Remortgage as soon as i buy a new build?

bjj0002 · 2009-05-14 14:52:04

Hello, This is my situation, i got a very very good deal on a new build. i paid £175k for a house that will easily be valued at £220-225k. Due to the circumstances there was only one bank we could get a mortgage with at 85% (10% was a 0% loan from the builder - therefore not many banks will accept this as a deposit). Now…

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dunstonh Posts: 119,806 Forumite

15 May 2009 at 1:37PM

New builds tend to lose around 10-15% the minute someone has bought them. So, the loan to valuations are likely to take a hit.

What an estate agent has a value is often well above the mortgage value. Estate agents are typically pricing 10-20% above expected sale price at the moment. Lender valuations, in a falling market, will work to the lower end typically and not the overpriced estate agent end.

I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

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