new build tips

firsttimerbuyer

Hi all, I am thinking of buying a new build property for 130k with a 5% deposit and 15% shared equity loan from the builder. The only lender that is willing to consider lending on the property is Nationwide who down value new properties (so I am told by my mortgage adviser).

The builder have said that in the event that Nationwide and down value they will be willing to refund my despoit if we cannot re-negotiate.

I have tried to knock the builder down by 10% before paying my reservation fee/survey fee but they are saying they consider this until the valuation price is confirmed by Nationwide.

The builder and mortgage adviser have said that as it is the end of the development the potential down value could work in my favour as the builder will be likely to down their price to match the valuation.

I am weighing things up in my mind and deciding whether to proceed or not. Does anybody have any experience/tips from similar situations for me to consider ?

kingstreet

I'd be surprised if Halifax wouldn't lend on it. You can normally guarantee if Nationwide will do it, Halifax will too...

What happens to your reservation and valuation fees if you can't reach agreement on the value/price?

firsttimerbuyer

Halifax wont lend as they have too much exposure to the area

Valuation fee will be lost if cant renogiate - builder says they will refund reservation fee if cant renogiate.

kingstreet

That's becoming a problem in a lot of developments. The lending choices are so limited a development can be spread across only a couple of lenders and that's not healthy.