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New Build Apartment Mortgages
knkh
Posts: 13 Forumite
I can't find any new build apartment mortgages for more than 80%... i'm looking for 90% can anyone help?
Thanks
Thanks
0
Comments
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Save up a bit more.0
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Or discuss this with the developer and get them to drop the price so that you fall into the 80% band?0
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Or discuss this with the developer and get them to drop the price so that you fall into the 80% band?
Thank you for your post. I have tried this but they will not offer anything! The price is the price and the mortgage companies have something against new build apartments. They will offer 90% on NB houses but not apartments...0 -
The reason for this, or so I was told by my mortgage advisor is it has something to do with the resale value of apartments. They will always be slightly lower than houses, due to the management fees, ground rent etc.
But then again, he could be wrong. He wasn't the most reliable bloke in the world!0 -
poppysarah wrote: »Save up a bit more.
Thank you for your useful advice. I hadn't thought of that!0 -
mortgage lenders are extremely cautious at the moment. If house prices fall, new builds and apartments traditionally fall in price further and faster than most other properties. This is why you cannot find a 90% mortgage. Maybe you are willing to take this risk but the banks are not.0
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Buy a second hand flat - they are cheaper and better value.
Builders call them apartments because it sounds fancier so people think they are worth more.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
The reason is they are cautious is because they have become like cars - new ones attract a premium. If you buy one for £100k, the day after completion it's likely to be worth £90k. Why would a bank lend you £90k on a flat they know will be worth £90k straight away.
Do as RW states and buy a second hand one, far more likely to get a bargain. It can still be a new build, just don't buy off the developer.0 -
I was told that new build flats had been associated with mortgage fraud.0
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