90% LTV mortgages for new builds

fubar4164

Hello all,

I have recently fallen in love with a new build house, but I will need a 90% mortgage on it. Looking online, many lenders seem to be balking at this because it is a new build. Does anyone know of a lender where this isn't an issue?

Thanks for any help

koexelek

I don't know of anyone personally.

that's not to say there isn't a lender who will do it though

emam

Hi, we have had the same problem this weekend, although we have already put down a deposit to secure a plot! Quite stupid in hindsight! There are no lenders prepared to give 90% ltv on a new build! The best on offer is 85% ltv, however there are only a few who will do this; nationwide are one and woolwich only took down their ltv last week! the major banks are all looking for 20-25% deposits for new builds! the interest rates are not that great either, 5.89% on a two year fix is the best I could see, so it is more expensive to buy a new build at the moment than an already lived in home!
However, lenders are changing their stance every week, so a 90%ltv could come on the market soon!
Good luck with everything!

Balarissa

Hi. We are currently buying a new build. Have you looked into any kind of scheme if you are a FTB that might be available on the site you've chosen, e.g HomeBuyDirect. Several new builds offer this sort of scheme designed for people who don't have a deposit/a large deposit.

My only other advice would be to see a whole of market mortgage advisor - we actually have a 20% deposit so not in the same situation but a broker might be able to negotiate a mortgage on your behalf. I know our broker has negotiated as we have a couple of special circumstances and having the broker argue for you can be useful as the lender may look into your actual situation rather than just seeing you as a bunch of numbers.
Remember to bargain hard when putting in an offer on your chosen home as new builds have a reputation for being over-priced, it might be that you can bargain down the price sufficiently for your savings to cover 15% rather than 10% of the cost price?
Natwest do a FTB 90%ltv but not sure whether they would consider a new build for that one.

DJ1UK

Balarissa wrote: »

Natwest do a FTB 90%ltv but not sure whether they would consider a new build for that one.

Nope they don't. You need 20% deposit (80% ltv) for new builds for RBS and Natwest FTB mortgages.

DJ

hoggums

Simple - find a newbuild at half the price - you can't afford this one.

_Andy_

Why drag up a thread from mid-august?

fubar4164

Actually,

I completed on the property last Friday with an 85% LTV mortgage from Nationwide (who didn't undervalue it), and it all went through without a hitch.

Am very happy now!