A really daft question - re getting a mortgage

MoneyMagician

My OH and I have had an offer accepted today on a new build flat in London. :T But we now have an awful problem.

The agent leading the sale has suggested that we talk to a mortgage advisor he could recommend - so with our sceptical heads on, we have.

We were working our finances and getting a mortgage using a 15% deposit and an 85% mortgage, paying all other costs/fees (stamp duty etc) ourselves. We meet all the mortgage affordability criteria so that shouldn't be a problem.

Their mortgage advisor then says that the minimum deposit needed for a mortgage on a new build flat is 20%, something we hadn't considered and haven't got.

Obviously we're not going to go with him - but is he right re the levels of mortgage deposit needed for a new build mortgage - and will this potentially scupper our chances of our home?

beecher

I think the problem is that it is a new build flat, and they certainly need a lower LTV than other properties. You really should've got the mortgage in place before putting an offer in - best to go and see a broker as soon as possible to see if there any 85% deals out there but be prepared to pay a premium. Personally speaking I'd be backing out of the deal ASAP.

Jacka87

You didnt say if you had spoke to an advisor in the first place and then seen the suggested advisor after.

I would say if you havenet already spoke to mortgage providers or advisor and have put an offer in then that was very stupid!!!

However it may still be possible, best course of action is speak to another advisor for a second opinion or just go straight to some of the lenders and see what they say.

I am sure you will find something but be careful about negative equity issues in the future etc.

MoneyMagician

I should have added....

We've already had a mortgage offer accepted, at the 15% deposit level but with having not put an offer in, no one had asked us about it being a new build.

I'm probably going back to the bank to see what they say re the matter.

beecher

MoneyMagician wrote: »

I should have added....

We've already had a mortgage offer accepted, at the 15% deposit level but with having not put an offer in, no one had asked us about it being a new build.

I'm probably going back to the bank to see what they say re the matter.

Just phone up the lender who gave you the mortgage offer - it'll be a quicker way of finding out where you stand.