New Build Mortgage w/ Builder Contributed Deposit

harvey115

By the way, there is no one stopping you from speaking to more then one broker at a time. Just chose whichever one you like and you believe they are doing the right things for you.

Millz

Yeah certainly, I'm not out of the woods yet but still much further on with an AIP than I was this morning.

I'll await the documentation before I do anything else.

kingstreet

Millz wrote: »

He's coming to see me over the weekend with the details. I'll be checking over the documents and will ask the question then.

I'd imagine it must ask if it's a new build. It's a fairly standard question.

It's unusual for any AIP system to ask about the property. The purpose of an AIP is to establish the borrower is credit worthy and to set an upper limit for their borrowing power. It doesn't ask about product, property, few of the details requested in a full application.

I'm going to run through the Halifax online demo and see if it asks...

kingstreet

I've sat through the Halifax "DIP Demo" and there is no question about the property.

The first question about the property which relates to newbuild is in the Full Application.

"Was the property built in the last twelve months?" is followed by "Property to be occupied for first time in current state?"

Anyone can look at it. Choose "Demo of online system" and the DIP Demos 7.12 section, after Login Demos and KFI Demos.

http://www.halifax-intermediaries.co.uk/service_plus/newonlinesystem/default.aspx

I don't know if any of the others have ever seen Halifax step outside criteria like this. The system is so automated, I don't know how they could do it. Still, I'm prepared to be wrong. You never know!

Has the broker completed a full application?

Dave_Ham

Remember that some brokers are now using the new Halifax system - not saying this is the case, but it is the updated Hybrid Lloyds version...

catrobs34672

Nothing to say. Most probably above discussion make a good result.

Thrugelmir

kingstreet wrote: »

So, you have 10% deposit from your own resources

Deposit is being generated by p/ex value on existing property.

So developer could be holding price of new build high to compensate.

All in order to create a deal.

In reality a financial illusion as both p/ex and new build are overpriced.

JPB123

Millz wrote: »

Interesting turn of events. Just had a call from the broker to say Halifax (who claim on the website to only do 80% LTV max) have agreed the mortgage in principal at 85%.

Thank god for that!

Halifax won't do 85% LTV on a new build, max 80%. They will do 95% on NewBuy, subject to the builder and broker being on panel. Otherwise, it's max 80%.

Halifax DIP system only wants to know if NewBuy or Shared Equity, doesn't ask about property at that stage.

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MattMedic

I'm beginning to think that all these schemes aimed at helping first time buyers are only there to help developers and lenders.

I'm trying to buy a new build house. Only got 5% deposit but builders willing to pay other 5% as well as paying stamp duty and legal costs. It makes it a price I'm happy with and can afford repayments on that amount but very few lenders are offering 90% LTV mortgages on a new build house and none seem to accept gifted deposits.

I can understand why, as it's effectively a reduction in house price and as such an increase in loan-to-value. The thing that annoys me the most is that the criteria are not readily available on the lenders' websites so I have to have to make endless phone calls, which end in inevitable disappointment.

The 95% mortgages with the NewBuy scheme are not cheap, plus the builders will not offer any reduction in price as they have to pay into an insurance pot.

Only hope now seems to be Santander (not cheap) or something else from an IFA. The one from the developer was not very helpful so spoke to Which? magazine's advisor (free, whole market and open to none members seemingly) or another I've found today aimed specifically at my profession. Will see what they get back to me with today.

Think I may have to accept that I need to wait a few years and get a bigger deposit saved.