New build 90%LTV mortgages....

daisbuys

Hi guys,

Went to arrange a part exchange on a new build today and the sales rep said that banks were not willing to lend 90% LTV only 80% on new builds.

Was gutted with this as had a mortgage agreed in principle for 90% ready and never knew this was the standard protocol with mortgages and new builds.

Don't know if it would make a difference but the house was originally on for £164,000 and has now dropped to £149,000.
The same houses on the same development have sold for £162,000 being the cheapest and £180,000 the most expensive over the last 2 years.

I was also getting the sales rep to get me a 5% deposit paid too, along with my part exchange on top, but would only get a maximum of £13,000 to use towards the deposit out of the part ex.

So my question is.....Does anyone know if there is anywhere doing 90% LTV's at present, or even 85%?

Thanks guys.

property.advert

Some new build maximum mortgage amounts are in the 65% range ! Look here http://www.mortgages-direct-uk.com/mortgage_lenders.htm

C&G 80%
Bristol & West 75%
RBS 85% but only on the discounted price, not some made up inflated number !
Strangely, the Halifax comes up as 95% !

Be careful out there, negative equity awaits on day one if you are not careful.

daisbuys

Thanks for the info PA.

With regards to the negative equity, I done my research and a semi detached just sold for 145k with a smaller garden. The property I am interested in is detached and has a good size garden and has dropped down to 149k and with a 5% deposit paid, means I would have been getting it for £141,550. So feel that I will be OK in regards to the equity.

And is also a sought after area as a few professional rugby and football players live in this area.

property.advert

No disrespect but professional footballers are not in the habit of buying houses which cost only a week's wages !

Some people used to take the 5% into consideration but not many. You will have to ask the lenders themselves. If you use the £141,550 figure as your true 100% price, then 90% is £127,395, 85% is £120,318 and 80% is £113,240.

So you have £13,000 on a prospective purchase price of £141,550 ? I guess you are going to have to find £1,155 for 90%, £8,233 for 85% and £15,310 for 80%.

That sounds hard if you are strapped but please do look at the higher interest rates on the higher LTVs and work out just how much it is costing you extra. 90% to 85% is a huge drop in cost.

azazle

I know that yorkshire bank/ clydesdale bank offer 90% on new builds. I can give you the details of a mortgage advisor in one of their branches who really helped me out.

daisbuys

Azale, that would be very much appreciated mate. Thanks!!

PS what was the APR?

azazle

I have PM'd the details of the mortgage advisor to you

daisbuys

Az, I think the 90% were offered to first time buyers only

azazle

They offer a lot of deals in branch that are not advertised online. The contact in the details I sent should give you a good idea of what's available.

daisbuys

Cheers mate, I sent her an email so hopefully will hear something on Monday.

Thanks again...

azazle

Last time i spoke to the contact at the branch they were offering 2 year at 5.49, 3 year at 5.99 and 5 year at 6.49 but these prices were based on 95-100% mortgages. They did offer me more competitive quotes on lower ltv's for example 90% but i cant remember off the top of my head what they were. They also offered a SVR at 4.49 currently but there offers change all the time. Word of advice, if they offer you the mortgage they will also try to offer life/building insurance...politely turn them down, they were quoting crazy prices

Just incase you didn't get my pm the arrangement fees are 1099 but they are offering discount on those (this might be first time buyers only, not sure) and valuation was free.