New Build LTV

DClayton

I am looking to move home into a new build. We have enough equity once depts are paid for a 14% deposit and the builder is going to put in a further 5% deposit as a gift. This makes my deposit 19% meaning i require a 81% LTV on mortgage.

Most lenders appear to only go up to 80% LTV on a new build. Does anyone know of a lender that would go up to 85% LTV? OR - do you think i could get away with a 81% LTV from a lender offering up to 80%?

beecher2

No, you couldn't get away with a 81% LTV from a lender offering up to 80%. Keep saving until you have the extra 1% - surely it shouldn't take too long?

DClayton

"Shouldn't take long"

I like your optimism but we are talking around £2500. Not easy to save with 2 children

baby_frogmella

Nationwide offer up to 90% LTV on new builds. I got a 86% LTV on a new build with them a couple of years ago. You may need to open a Flexaccount with them to get >80% LTV with them (i may be wrong).

hcb42

can you beat the price down a smidge more?

holly_hobby

You also need to be aware that some lenders do not accept gifted or builder deposits - and will want the full deposit reqd to come from your own means. So this must be disclosed at outset with the ok from the lender, otherwise you may get in a pickle.

beecher2

DClayton wrote: »

"Shouldn't take long"

I like your optimism but we are talking around £2500. Not easy to save with 2 children

If you're taking on a £200,000 plus mortgage I'd hope that it wouldn't take forever to save up £2500.

also be aware that if the lender values at less than £250,000 your LTV would be even higher.

DClayton

Thanks everyone so far.

Baby Frogmella/Holly Hobby - I have checked nationwide and they except builders deposits and will go up to 85% LTV for non-customers.

HCB42 - With regards to getting the price down a bit more I am not sure they will budge if they are giving me 5% deposit.

Beecher2 - I understand what you are saying but i currently have a mortgage plus a couple of big loans so not a lot of room to save. If we manage to sell our house and move, the loans will be paid and the mortgage works out less than our current mortgage plus loans up to about 6% interest rate.

rndb

Double check with Nationwide - I have a relative who recently (within last two months) got 90% ltv on new build by switching their current account to them, otherwise it was 85%