First time buyer 90% LTV

timmymc

Hello

I'm planning or hoping to get a mortgage with 90% LTV for a property valued at about £250-£270k in London. We have between £30-40k for fees and deposit and our combined earnings are £80k p.a.

I'm currently working through my probation period at a new job, by Experian credit score is 750 (for what that is worth?) and my partner's is 999.

First Direct, my bank, wouldn't even consider me because I'd gone over my agreed overdraft a couple of months ago, even though that was because of getting double charged for some train tickets that wasn't my fault.

Post Office said they'd give us a mortgage but not for a new build and we've found a new build in London.

Does anyone have recommendations about banks that would likely give us a mortgage at all and of those which would give us a decent rate, if any?

I'm so scared that we won't get anything...

Thanks all

hazyjo

Speak to an independent broker. They'll advise you.

You'll probably need to complete your probation period though...

Jx

missjy

I found a great deal with Natwest myself - even a broker said he wouldn't have been able to find me a better deal. They have some FTB exclusive rates that don't charge a fee. Their agreement in principle process is simple (but my credit record is pretty much perfect and I've banked with them since I was 18) and if u go on their website they've got a call back service. Give them a try.
Ex-partner had a CCJ and bad credit record, Santander were the only ones willing to lend so maybe they are a bit more flexible than others.

jonny_power

we were rejected from Northern Rock and accepted no problem with Santander, so that's another one to add to the "Santander are maybe a little bit more forgiving" list.

chambta

A mortgage on a new build at 90% would seem unlikely. Admittedly I don't know the lending policy of all lenders but 70-80% maximum is typical.

brit1234

New builds typically need far bigger deposits of about 20%+ deposit due to them being even more overvalued than normal properties and likely to fall more.

Have you considered a none new build and waiting till Christmas with the price falls. That will give you a bigger percentage deposit and a better interest rate potentially saving you a fortune in interest charges.

Might as well take advantage of the falling prices to your advantage.

Also try using Property Bee to monitor the Rightmove properties. It gives you a big advantage to work out the sentiment of the seller.

http://www.property-bee.com/

timmymc

Thanks for the advice. I think we're going to have to look at an older property. Thing I find odd is that a new build in a rather well-heeled part of London is unlikely to fall in value but seems afflicted by the same criteria that applies to the rest of the country. Thing is I won't suddenly have 20% deposit so will have to re-think.

The main reason for wanting to buy is to actually start putting money by rather than paying rent into an empty hole. If a mortgage is expensive it won't help us so we have to get the value right.

Does anyone think London property values are likely to fall?

Yorkie1

It's not so much that prices may fall in London, it's that new builds are overpriced by developers and thus the second hand resale value is less.

devotee

timmymc wrote: »

Thanks for the advice. I think we're going to have to look at an older property. Thing I find odd is that a new build in a rather well-heeled part of London is unlikely to fall in value but seems afflicted by the same criteria that applies to the rest of the country. Thing is I won't suddenly have 20% deposit so will have to re-think.

The main reason for wanting to buy is to actually start putting money by rather than paying rent into an empty hole. If a mortgage is expensive it won't help us so we have to get the value right.

Does anyone think London property values are likely to fall?

No one knows! FYI the London prices are up from last year and level/up from 2007, of course depending on the property and area. New builds are likely to fall in price as they keep producing them. But the main reason for price rise here is the lack of available properties for sale.
When I was looking to buy last year in a specific area there were about 200+ properties listed in my price range, now there are about 60. Mostly non-movers from last year. Anything decent goes quickly.