New build mortgage LTV

Wh05apk

123lushan wrote: »

Believe it or not, all the banks I spoke to said they wouldn't give me an AIP until I've put an offer in on a place. They would only tell me how much I can borrow, subject to credit checks. Which is how we came up with 400k (borrowing 340k which is 4x our gross income). I thought this was odd as you'd feel more secure with an agreement in place, but the banks were adamant this is how it works (is London just weird)

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...........................and that's why you shouldn't take "advice"on something as important as a mortgage from a bank's sales person!

An "agreement in principle" is an agreement "in principle" before you find a property.

123lushan

4% is the ball park figure and affordability based on 25 years (although given our age 30 years is also feasible) and current pay not pay come completion. We know our pay will go up in the next few months and we know how much by as well because it's related to the our study progress. We aren't so reckless as to pick a product with an unaffordable mortgage repayment!

And we did speak to mortgage advisors not a sales person! People whilst I appreciate all your comments, picking out things I may or may not have done right isn't helping me out of this (although it's educating massively overall). I need help on mortgage brokers, available deals etc etc. We are prepared to lose the £500 and walk away but not before we rule out the possibility of getting a 15% LTV mortgage. Thanks!

Wh05apk

123lushan wrote: »

And we did speak to mortgage advisors not a sales person! People whilst I appreciate all your comments, picking out things I may or may not have done right isn't helping me out of this (although it's educating massively overall). I need help on mortgage brokers, available deals etc etc. We are prepared to lose the £500 and walk away but not before we rule out the possibility of getting a 15% LTV mortgage. Thanks!

If you had spoken to a mortgage broker, then they would have been able to give you an AIP, it looks like you have spoken to a sales person/"advisor" in a bank (did their IDD state "advice"?)

85% new build flats are very rare, I have already suggested Abbey might do this, their rates are also better than Nationwide, which you seemed happy with before, so can I suggest you contact a broker, as them about Abbey's new "risk weighted lending policy" and see if they can obtain it through them? I would not recommend using Abbey branches direct, as they will probably not be aware of this, and be more interested in selling you a bank account or credit card.

123lushan

We have struck lucky. Mortgage agreed with Woolwich on 85% LTV and 4.5x salary multiple, subject to valuation and supporting documents. Thanks to everyone's help. No doubt if the valuation comes back too low I'll be stressed again but having read other threads I will just have to go back and renegotiate.

So FTB, Woolwich will do 85% LTV deals. They seem to place more weight on repayment affordability, which is how we have managed to get 4.5x salary.

vicki488

Hi everyone, I'm just going to jump on the back of this as you have mentioned something I'm particularly interested in. My partner and myself have been looking at new builds and have been trying to get them to drop the price a bit but they always refuse point blank. We are worried if they say no and we sit back and wait that we may end up losing out on the plot we would of liked?