Max LTV% on new build not covered by newbuy

VioletLime

Hi everyone, long time reader, first time writer here Hope I'm in the right place!

I'm a first time buyer interested in purchasing a new build apartment which unfortunately does not fall into the newbuy scheme criteria (I'm going to guess a lot of people who live in London in my situation will also come across this problem).

I have a 15% deposit but I am struggling to find a bank/building society willing to lend more than 80% LTV on new builds.

My bank is willing to lend me more than I require and the monthly repayments on the mortgage will be very comfortable so neither of these points are an issue.

I'm absolutely gutted I am going to miss out on this place just because it is a new build, the bank said an 85% LTV on an older property wouldn't be an issue

Has anyone heard of someone managing to obtain an 85% LTV on a new build outside of the newbuy scheme?

droiderm

I think nothingham bs does 90 percent on new build houses.
Give them a call and check

VioletLime

droiderm wrote: »

I think nothingham bs does 90 percent on new build houses.
Give them a call and check

Thanks for the reply!

I just checked and unfortunately these guys don't provide for London house prices

kingstreet

AFAIK no-one will lend 85% on a newbuild flat.

No way you can get a 5% builder's deposit to add to your 15% to make 20% in total?

VioletLime

kingstreet wrote: »

AFAIK no-one will lend 85% on a newbuild flat.

No way you can get a 5% builder's deposit to add to your 15% to make 20% in total?

They haven't offered, however I haven't asked either...

I was under the impression this knocks 5% off the valuation of the property too?

kingstreet

No it doesn't. Plenty of lenders still accept builder gifted deposit, as long as it's no more than 5%.

Scottishrob79

First Direct lend up to 85% LTV on newbuilds, but you have to have a minimum of £25000

VioletLime

Scottishrob79 wrote: »

First Direct lend up to 85% LTV on newbuilds, but you have to have a minimum of £25000

Nice find, you are indeed correct.

Unfortunately I've just found out they only offer 4x basic and I need 4.5x argh so close there too!

and the hunt continues...

kingstreet

Scottishrob79 wrote: »

First Direct lend up to 85% LTV on newbuilds, but you have to have a minimum of £25000

On both flats and houses?

Scottishrob79

kingstreet wrote: »

On both flats and houses?

It just says newbuilds on their website

kingstreet

I couldn't find anything else either. The only reason I mentioned it is that many lenders have a lower maximum loan to value for newbuild flats than they do newbuild houses.

Nationwide for example;-

New Build Flats & Houses - Valuations
The maximum loan to value on New Build Flats is 75%.
The maximum loan to value on New Build Houses is 85%.
The maximum loan to value on NewBuy Houses or Flat 95%.