Mortgages for New Build Flats

Mrs_Bumble

Would be worth looking at what the flats have actually been selling for recently, as asking prices have nothing to do with the actual valuation. Websites like https://www.zoopla.co.uk are worth looking at as they can give you the information based on what the title has been registered at.

New build flats are a particular issue because there are so many of them, when you move in they become second hand immediately (like a new car) and if the builder is still on site he will still be building. So if you were a future potential buyer would you want to buy the nice shiny new flat with the nice incentives from the builder or the second hand flat from you?

How long is the builder going to be on site for?

Be extremely cautious of buying off plan!

Be very interested to know if Nottingham are lending on new build flats at 90%, in fact I would be utterly gobsmacked, so let us know!

irn_bru

_Andy_ wrote: »

New builds, and especially flats, have performed badly during the downturn.
Once you buy, the value drops straight away - similar to when you buy a new car.
Yes you could put down more deposit to protect against negative equity but this isn't going to change the fact that it probably isn't a good investment.

The fact that mortgage lenders want a large deposit for new-builds should be telling you something - i.e statistically they're a big risk.

QUOTE]

You see this argument a lot but don't forget that you will spend more money on refurbishing an old house so invesment wise it works out more or less the same. If you're young then most older homes will need £10k spent on them to get them how you want. Plus with a new build you get the peace of mind of a 10 year warranty

_Andy_

Mrs_Bumble wrote: »

New build flats are a particular issue because there are so many of them, when you move in they become second hand immediately (like a new car)

That's my analogy!

JJmcClure

This particular new build is finished and ready to move into

Didn't see any builders around - it looks finished. Some people seem to have moved in.

I was hoping the negative equity issue might be less as it's so near central London and is a real commuter town

I think refurbishing an old house is certainly something I am considering

The main reason I am interested in a new build is I don't have the extra money to do up an older place.

Will call Nottingham this lunch time

_Andy_

JJ - if you have the postcode etc you can look online (e.g. Rightmove, Zoopla) to see the sold prices of that development (if there are any so far).

HTH

JJmcClure

Cheers! Am trying to find the postcode now

_Andy_

Once you've got the sale prices info might be worth posting them on here.
If you need any help just shout (not literally)

jade1986

Mrs_Bumble wrote: »

Be very interested to know if Nottingham are lending on new build flats at 90%, in fact I would be utterly gobsmacked, so let us know!

They are willing to lend 95% on our new build house, or 90% with 5% being a gifted deposit.

My Dad is a Mortgage Broker and he recommended I called them direct

Mrs_Bumble

That is interesting Jade1986, and I am surprised, they must be rushed off their feet! Will still be amazed if they use the same strategy with flats. But very interesting thanks:)

jade1986

Mrs_Bumble wrote: »

That is interesting Jade1986, and I am surprised, they must be rushed off their feet! Will still be amazed if they use the same strategy with flats. But very interesting thanks:)

She did say on the phone to me that it is not something they are heavily advertising on.. and then I walked past one of their branch windows and they were covered with huge posters saying..

First Time Buyers 95% Mortgages!

That was on Saturday as well..

I must admit I was quite suprised as well, the first question I asked was 'is this okay for new builds?' and she said it was no problem whatsoever