New build mortgage LTV

poppy10_2

123lushan wrote: »

I read it from a few other sources (articles written in October 2011), which said 75% LTV for new build flats.

What sources? As far as I know Nationwide have restriced new build flat LTVs to 75% for well over two years.

123lushan

Mostly mortgage advice related website. Also just called Nationwide and they confirmed it's 75% LTV. Should put it on the website....

Just spoke to London and Country Mortgage who said my chances are slim but they will research to see if there are any 15% deals out there.

abdn_girl

Hi 123Lushan. As someone who bought their first flat this year I have every sympathy with you about just how stressful it is, and I know how much you will want to get out of the rental market. However, it seems to me that you haven't done nearly enough research into mortgages yet. There is a massive difference between looking round houses and browsing websites to actually discussing all the ins and outs with a qualified independent mortgage advisor. Every circumstance is different, and you need someone who will give you proper impartial advice about whether you are in a position to buy right now and how much you can expect to borrow. Your excitement to buy has cost you £500 but it's a small price to pay if it makes you seriously reconsider all your options. Good luck, keep hunting, but don't be so hasty in future about the biggest purchase you will ever make!

123lushan

Abdn_girl many thanks. You nailed exactly how I'm feeling at the moment. Unfortunately we haven't had a great deal of time to carry out proper research on mortgages (when you work 10-12 hours a day in an office and have to study for exams at the weekend) which has resulted in our recklessness. Think bf and I have learnt a lot through this!

GMS

OP there is no point in worrying about what could have been done now. Whats done is done.

With hindsight there were things to have been done differently but thats life.

Do you have 15% deposit of your own funds or are you relying on an incentive from the developer?

123lushan

15% deposit from our parents (and I am very grateful! They might be able to stretch to 25% but I feel they have been generous enough and don't want to push it). The developer hasn't got any incentives in place. Renting in London means we have very little savings, and it'll take us years to save up a decent deposit (and fritter away tens of thousands on rent) whilst the property price continues to rise (that does happen in London!)

It's awful to think that the two of us earn over £80k together, at the age of 25, and can't afford a flat in London. Of course we can move further out but to think that we work hard enough as it is, the last thing we want is a 2 hr commute everyday (although I know plenty of people do it, maybe we are just silly)

GMS

An extra 5% would make a difference but understandably you are reluctant to ask your parents.

See what L&C come up with. If you can manage to get 20% deposit then options are there.

What made you approach Nationwide initially?

leveller2911

123lushan wrote: »

15% deposit from our parents (and I am very grateful! They might be able to stretch to 25% but I feel they have been generous enough and don't want to push it). The developer hasn't got any incentives in place. Renting in London means we have very little savings, and it'll take us years to save up a decent deposit (and fritter away tens of thousands on rent) whilst the property price continues to rise (that does happen in London!)

It's awful to think that the two of us earn over £80k together, at the age of 25, and can't afford a flat in London. Of course we can move further out but to think that we work hard enough as it is, the last thing we want is a 2 hr commute everyday (although I know plenty of people do it, maybe we are just silly)

Agreed but its pretty poor that you need the help from the "Bank of mum and dad" rather than standing on your own feet and save for a deposit like most people do.
I wish you luck but stop whinging ,on £80k a year theres no earthly reason why you shouldn't/can't save up .....The housing market is not going to pick up for at least a couple of years so why the rush to buy now ...

123lushan

I bank with them, have been for the past 13 years and have always liked their service. The rates on a 85% LTV 2 year fixed deal were the lowest I saw, so the monthly repayments were affordable. Given our requirements we'd be borrowing at the very top end of the budget so need lowest rate around.

I don't think we can get another 5% out of them, well we can try but I don't want to play the selfish child...(the property is over £400k and they have already agreed to pay stamp duty too, which is another 12k) I feel like we are taking away their retirement savings to help us get on the ladder. Obviously in 10 years we'd be earning much more than now and can help them out but we just want to get on the property ladder asap. Hurts me to think how much rent we pay!

GMS

Could you not find a house at 400k? Takes away the issues at a stroke.