20% deposit on New Build Apartment for FTB

actresskat

Hi, We're first time buyers looking for good mortgages that require a 20% deposit (80% LTV) and find that most of the best rates are set for a 25% deposit...anyone know of any good rates for us? Many thanks for your help!

dunstonh

New build and apartment are the two worst things for a lender to hear in a house price recession. Builders tend to over price by about 15% (so you see a value reduction of around 15% straight away - some have seen much much more) and apartments fall more than houses when prices go down. So, a new build apartment in one is a right turn off for many lenders. Hence the larger deposits required.

Also, in the current market, quality counts. The larger the deposit, the more likely the borrower is to repay the mortgage. So, the lower the risk and the better the rate offered.

actresskat

Thanks for your response...we're certainly finding it challenging! Could you recommend a good way of going about finding lenders offering 80% LTV for new build flats?

dunstonh

Could you recommend a good way of going about finding lenders offering 80% LTV for new build flats?

I will leave that to the mortgage advisers to answer. As an IFA it's not my area of knowledge.

actresskat

Thanks dunstonh, we've contacted someone locally and also London & Country to see what they say.