New builds

tyros_2

Idiophreak wrote: »

The way I read the OP it sounds like they have 20% of the new, lower price to use as deposit...

Yes, this is correct. We've had them take £23,000 off so far so it's now at £128,000 and I have 20% of that as a deposit.

RufusA

tyros wrote: »

Thanks for the comments. Does anyone have a list of lenders that currently do 80% LTV on new builds as I know some of them are 75%.

House or Flat?

tyros_2

It's a flat in the West end of Glasgow.

RufusA

tyros wrote: »

It's a flat in the West end of Glasgow.

If it's a flat, then sadly the number of mortgage lenders willing to loan over 75% are few and far between.

The HBOS companies (Halifax, Bank of Scotland, Birmingham Midshires), as well as Woolwich used to do 80% mortgages on new build flats. However I can't find their current policies online to confirm.

Also you may find a "local" building society willing to lend 80% on a new build flat, however I think most local building societies that would cover Glasgow have been taken over by Nationwide et al.

Best bet is to talk to a whole of market mortgage broker with some local knowledge of the area.

Good luck - Rufus.

almillar

bingibongi - I've checked and my newbuild definately isn't made of cardboard. It's also watertight and hasn't fallen down, though you have got me worried now. I did say I'm not an expert, I had meat to say that the info I had got was from EAs and builders, who would be biased of course, but on the evidence of the site I'm in, all the houses they're working on are booked. Didn't see any evidence in your post, just gross generalisations, though as it turns out others have pointed out that it's harder to get a mortgage for a NB. Having just bought one, I can honestly say that I didn't come up against this!

tyros_2

almillar wrote: »

...as it turns out others have pointed out that it's harder to get a mortgage for a NB. Having just bought one, I can honestly say that I didn't come up against this!

What sort of deposit did you have?

bubblegumcola

I'm surprised that with new builds you are less likely to get a bigger mortgage. Our first flat was new build and we got a 100% mortgage as we had no savings, a few years ago now. We still had a very high mortgage when we sold up and moved to a slightly bigger property and it was also new build, no problems getting a mortgage.

figgles

bubblegumcola wrote: »

I'm surprised that with new builds you are less likely to get a bigger mortgage. Our first flat was new build and we got a 100% mortgage as we had no savings, a few years ago now. We still had a very high mortgage when we sold up and moved to a slightly bigger property and it was also new build, no problems getting a mortgage.

As you've said, that was a few years ago when 100% (or higher!) mortgages were available. They are few and far between now thanks to the economic turmoil of late. 75% is the most common out there these days but we are seeing 80%+ sneaking in now too.

The more you want to borrow though, usually you'll end up paying a higher interest rate and also be subject to stricter criteria, something the banks should have done a long time ago which would have helped avoid this mess in the first place!

almillar

Tyros - it's our second house, but we scraped 75% to get the better rates.