santander pulling 90% mortgages :(

deb788

After getting our AIP a few days ago our broker has informed us that Santander are pulling their 90% mortgages .

As the house is a new build we have been told our only option is to find another 5% to make the deposit to 15% overall ?

The problem is that the house is not built and has not been released for sale although we have reserved it , so if we applied for a formal mortgage application now by the time the house is released it is no longer valid.

Wondered if anyone had any advice ? I presume we are limited to the banks that will lend as it is a new build ?

Dave_Ham

Difficult position.

There are banks at 90%, when is completion set for?

deb788

end of october beginning of november

the broker has contacted Red row and asked if it can be move forward but they said no

Dave_Ham

Believe me if they could pull forward they would..

Sure your broker will find an alternative, although the rate and package may be a touch higher..

Good luck

The_J

Broker messed up thinking Santander do 90% on a new build...now backtracking. Oops.

Thrugelmir

deb788 wrote: »

The problem is that the house is not built and has not been released for sale although we have reserved it , so if we applied for a formal mortgage application now by the time the house is released it is no longer valid.

When are you due to exchange contracts ?

deb788

They originally told us that the formal application would be end of may and the completion date end of october / beginning of november .

I suppose if we can get the extra 5% together it will be better for our rate and monthly payment and we do have a few months to find it .

just frustrating as it is a change of plan

deb788

Dave_Ham wrote: »

Believe me if they could pull forward they would..

Sure your broker will find an alternative, although the rate and package may be a touch higher..

Good luck

apparently no alternative ? which surprised me as looking online there are some , thats why im presuming that we are limited as its a new build

deb788

The_J wrote: »

Broker messed up thinking Santander do 90% on a new build...now backtracking. Oops.

I thought they did 90% if you were a FTB but 85% normally ?

GMS

They were doing 90% on new build houses for first time buyers. This has bene lowered to 85% now in line with next time buyers.

Abbey are a nightmare at present. In reality they dont want to lend so come up with all kinds of criteria amendments.

Dave_Ham

deb788 wrote: »

I thought they did 90% if you were a FTB but 85% normally ?

Santander were doing 90% on new build, they are harder to source at the higher loan to values.

If you can scrape to 85% loan to value, it really makes a significant difference to your interest rate.

If not, there are 90% products but with a few hurdles and unattractive rates.

All the best.