Santander 85% LTV on New Build (NFTB)

RicciSK

Morning all,

We have recently put down a reservation for a Taylor Wimpey new build. The Property was on for 299,950 about 2 months ago and had been reduced down to 249,950 which prompted our interest.

We have a 10% deposit in cash have negotiated a deal with TW to give us another 5% as a further deposit, giving us a potential 85% LTV.

Before we put the reservation down we were put into contact with their IFA. He recommended us to go with Santander and credit scored us based upon our figures to see if we qualified as being suitable, which we passed.

Great I thought, meeting scheduled this evening to fill out the forms etc until I start reading Santanders website last night.... On there it states that the maximum LTV for a Non-First Timer is 80%! A FTB however can get 90%. Should the IFA even be putting us forward for this mortgage, the way I see it is we don't even qualify for it?

Anyone had any experiences where lenders are flexible with the LTV rate for new builds, my thoughts are I seriously doubt it....

Thanks

maninthestreet

Have you raised this concern with the IFA?

RicciSK

maninthestreet wrote: »

Have you raised this concern with the IFA?

I have left a message with him this morning but I'm awaiting a call back.

kingstreet

Do you have a mortgage at present?

If not, when was your last mortgage repaid?

What is Abbey's definition of a first time buyer?

RicciSK

Just spoke to him and apparently they is some 'special deals' with the major builders which will allow 85% LTV.

In response to the question above my partner and I both have mortgages. I'm renting my property out and have been receiving rent more than the mortgage payment for the last 6 months. My partner will be renting out her property upon completion, again for more than the mortgage payment.

kaylz39

Why does a new build change things?

I'm trying to get a 90% LTV on a new build, we already have a mortgage- were wanting to rent this out.

Do these exist???

bigadaj

You may need to check whether the valuation is the same as the purchase price, in this case it seems to me that the builder contribution may be ignored by a lower valuation and so you could be touching 90per cent ltv.

If you have a mortgage on a let property then be conscious that if this is only consent to let this will probably be limited, and longer term you will have to get a more expensive buy to let.

Apologies if neither are applicable but they need checking.

hezza86

kaylz39 wrote: »

Why does a new build change things?

I'm trying to get a 90% LTV on a new build, we already have a mortgage- were wanting to rent this out.

Do these exist???

this is a situation we are in and my partner is furious about it all. We have fallen in love with a new build. (have a current mortgage) we intended to sell our current property and port the mortgage over until our mortgage company told us with a new build they will only give us 80% LTV. (our current mortgage is 90%) and we just dont have a 40k deposit as second time buyers. It an apauling system and makes me very angry. They wonder why the market isnt moving there is the answer. We feel like first time buyers all over again, infact i'd be better off as a first time buyer we'd get a better mortgage deals (miller homes have a deal where you mortgage 85% and they do the last 15% and you then take that on in 10yrs, but own 100%) oh but wait this deal is only for First time buyers! gggrrrr
rant over!

brit1234

hezza86 wrote: »

this is a situation we are in and my partner is furious about it all. We have fallen in love with a new build. (have a current mortgage) we intended to sell our current property and port the mortgage over until our mortgage company told us with a new build they will only give us 80% LTV. (our current mortgage is 90%) and we just dont have a 40k deposit as second time buyers. It an apauling system and makes me very angry. They wonder why the market isnt moving there is the answer. We feel like first time buyers all over again, infact i'd be better off as a first time buyer we'd get a better mortgage deals (miller homes have a deal where you mortgage 85% and they do the last 15% and you then take that on in 10yrs, but own 100%) oh but wait this deal is only for First time buyers! gggrrrr
rant over!

Sorry about your situation but you have to realise that most new builds are over valued. The banks got badly burnt during the bubble and still have the new build loses on their books hence the greater deposits to protect them.

The original poster said about the developer giving them a 5% gift deposit. It is dodgy stuff like this which banks don't like now and often give far lower valuations than the asking price the developer sets.

kaylz39

brit1234 wrote: »

Sorry about your situation but you have to realise that most new builds are over valued. The banks got badly burnt during the bubble and still have the new build loses on their books hence the greater deposits to protect them.

The original poster said about the developer giving them a 5% gift deposit. It is dodgy stuff like this which banks don't like now and often give far lower valuations than the asking price the developer sets.

Yeah I might just go into this meeting today and play a bit of hard ball, see what they can do for me rather than me begging them to keep the house for us.

Thinking about it, the house is ready in August and after the person who secured it with an early bird dropped out were the only people interested in it. They've got the exact same house ready in January too and again no interest on that- the one in August is a much better plot.

I might see if they'd be willing to lower the price so we dont have as much to save and maybe holding it will were ready in Jan 2013- worth a try to see what they can do maybe?!

The development has only recently become up and running again after 2 years of nothing happening- when the housing market took a hit they just down tool's.