Is there a mortgage for me?

venster

Hi.1st time poster looking some advice. My situation is as follows:

Recently divorced looking to buy a property (ex still has FMH) so I'm not classed as first time buyer.

Can hopefully get 10% depsosit (but no more sadly at the moment) for 200k purchase price, good earner 70k+ gross pa and want to buy new build...which is my problem.

I have 'enquired' with a few banks and lenders but they are unwilling to give 90% mortgage against new build houses. Seems silly as I can afford repayments (my rent is more than a 180k mortgage would cost !)

Is it worth trying a broker or am I doomed to a life of renting..... ?

thanks

SAMMYE_2

venster wrote: »

Hi.1st time poster looking some advice. My situation is as follows:

Recently divorced looking to buy a property (ex still has FMH) so I'm not classed as first time buyer.

Can hopefully get 10% depsosit (but no more sadly at the moment) for 200k purchase price, good earner 70k+ gross pa and want to buy new build...which is my problem.

I have 'enquired' with a few banks and lenders but they are unwilling to give 90% mortgage against new build houses. Seems silly as I can afford repayments (my rent is more than a 180k mortgage would cost !)

Is it worth trying a broker or am I doomed to a life of renting..... ?

thanks

Hi ya welcome to MSE board :-)

As your salary is really good why dont you really put your head down and save a better deposit? (I see you say you cant but is there no way you might be able to?) You will get a much better rate with a better deposit. Has the lender said what sort of deposit you would need for a new build?

_Andy_

venster wrote: »

Seems silly as I can afford repayments (my rent is more than a 180k mortgage would cost !)

Whether you can afford the payments isn't the issue. What the issue is is that the property, being a new build, will devalue as soon as it's purchased. Also new builds have historically not performed well.
Thus they represent a higher risk to the lenders, who in turn require more deposit to offset that risk

PasturesNew

It's not about whether you can afford it or not, it's that the minute you buy a new house it's 2nd hand, so worth less. Quite a bit less as the developers are offering loads of "free" goodies/choices, which you'll get, but which won't be part of the package that could be offered to a buyer (if things went t1ts up and they repossessed).

It's pretty common to come across this.

Why not buy something a few years old, there are loads of almost new builds for sale.

ILW

Why does it have to be a new build?

rndb

Try calling nationwide. They will lend 90% on new build (house only not flat) provided you change your current/main account to them.

rndb

Also think Notts building society will lend 90% on new build but pretty rubbish interest rate (although good compared to historical rates!!!)

poacherp

Hi Venster

You state that you have a 10% deposit - unfortunately you are limited with the number of lenders willing to consider a 90% mortgage irrespective of whether its a new-build or not. Indeed, if you did go for a 90% mortgage, the interest rates are not as attractive as those available with, say, a 15% deposit.

You seem to be on a decent income and I would suggest it be better to consider saving for a bigger deposit - perhaps not what you want to hear but you may save money!

venster

Thanks for all the replies. Deposit wise , family are lending the money to me as I can't really save at moment. I've got a lot of debt from my costly divorce- the little savings we have got will go towards paying credit cards off. I also pay a lot of maintenance for my children so my ability to save is almost impossible.

The reason for new build is for ease and cost really. In rented means I don't have to worry about a chain and cost wise- I can make a cheeky offer and try and get a bargain and upkeep wise, it's brand new so dont need to worry about upkeep for a while.

I have been told by a broker that I can get a 90% mortgage.

But I am slowly realising that new build will be difficult to achieve but will talk to Nationwide today ...