Mortgage opinions please?

nathan_1986

Hi guys, i applied for a mortgage on a new build apartment around 6 months ago, I was declined due to it being for a new build. I was also advised that things can change on a weekly basis and to keep an eye on what lenders are lending. i do have a ten percent deposit. 15 percent at a push, What do you think of my chances? The mortgage advisor did actually tell me that i can afford the repayments and that i should be able to get a mortgage just not on a new build. So i guess the unlitmate questions are do i stand a fair chance on getting a 90% mortgage on a new build

Thanks all

Nathan

Mrs_Bumble

Declined due to it being a new build? That the only reason? Why?

You would have to check out what the prices have been doing for the new build apartment in question, lenders particuarly nervous about flats and apartments. If any have been sold in the last 6 months you should be able to see what they have been going for on https://www.zoopla.co.uk

90% LTV on a new build flat/apartment would be a slim to none I think! But maybe I will stand corrected. Sorry

ktid

Hi there, I'm in the exact same boat as you. I've been knocked back from HBOS and Clydesdale on their "First Time Buyer's Exclusive Deals" because the house we are interested in is a new build.

The two deals were both fixed rate at 5.9% and 6.1% respectively.

We have a 10% deposit yet we're faced with having to go with the higher interest rate mortgage because the house was built within the past 2 years so technically it's classed as a new build.

It's frustrating, so I too would love to hear what anyone that has any insight to this has to say

Thrugelmir

ktid wrote: »

Hi there, I'm in the exact same boat as you. I've been knocked back from HBOS and Clydesdale on their "First Time Buyer's Exclusive Deals" because the house we are interested in is a new build.

The two deals were both fixed rate at 5.9% and 6.1% respectively.

We have a 10% deposit yet we're faced with having to go with the higher interest rate mortgage because the house was built within the past 2 years so technically it's classed as a new build.

It's frustrating, so I too would love to hear what anyone that has any insight to this has to say

Was the property fitted out? Kitchen etc?

ktid

Thrugelmir wrote: »

Was the property fitted out? Kitchen etc?

Yeah had a built in fridge-freezer, oven/grill etc and all the units were in and the floor was tiled (it was an ex show home)

Thrugelmir

ktid wrote: »

Yeah had a built in fridge-freezer, oven/grill etc and all the units were in and the floor was tiled (it was an ex show home)

Thought that this might the case. The developer would have costed in the work that they've put into the property in addition to the actual construction cost.

The valuer will be discounting the white goods, carperts, light fittings, tiles in determining the value of the property.

Wutang_2

Brock_Landers wrote: »

stop blaming everyone else bar yourself.
QUOTE]

They're not, you judgemental, illiterate and irrelevant fool.

If you can't do 'attitude' properly, then maybe try sarcasm.

ktid

Brock_Landers wrote: »

The reality is that you cannot have it! Easy as really...you don't have a large enough deposit! A mortgage is not a right...comprendi?

You want your 'your' house? Then save up some more and stop blaming everyone else bar yourself.

Oh..and stop listening to the missus!

Who said I was blaming anyone, you seem to be on a bit of a crusade here Brock to spout as much crap as you can

The reality is we can afford it but only at a higher interest rate mortgage, so your talking rubbish there again.

Who said a mortgage was a right, why question was why do they not give out the lower interest rate mortgages to FTB on new build properties, if you can't answer the question then don't reply because essentially your only spamming the boards

Thanks to all the guys with some sensible input there

Wutang_2

Brock_Landers wrote: »

Wutang wrote: »

Hit a nerve did I master ramper? Bad day at the Estate Agents office today?

Iliiterate gibberish...isn't that a googlewhack??

Anyway, whats all the estate agent stuff? I work in a Flue Factory.

Leave the ftb alone or be more constructive - some people are very new to all this and some d**k patronising/insulting them and helps no one.

HelpWhereIcan

Jeez, you spend some time away from this site and it becomes over-run with HPC commandos all bitter that the fall in prices has been coupled with a tightening in criteria meaning that they have not been able to snap up the bargains they thought they would.

The opposite of property ramping appears to be ranting online at anyone who has bought a property, wants to buy a property or has been unfortunate enough to get into financial problems.

Anyway, back to the OP.

Unfortunately at 10 or 15% deposit you will not be able to get a mortgage for a new build flat.

I would be very surprised if you could get a new build flat with less than a 20% deposit. Even a new build house would require a deposit of that level and I would expect flat to need between 25 and 35% with most lenders.

Essentially, new build flats have been hardest hit by the falls of the last couple of years and have also been the focus of most of the fraudulent activity that has gone on. For that reason lenders are taking a much more cautious approch to them and will need a bigger deposit to protect their security.

One option may be to buy from a developer taking part in an equity share scheme but otherwise it is a case of continuing to save and keep an eye on the mortgage market for signs of new build criteria loosening up.

Good Luck

ktid

Got the verbal offer on the new build accepted today and haggled to get 5k off the asking price so were happy, thanks for all the advice, especially Brock, you hold a special place in my heart