10% Deposit questions

Just_30

Hi all,

Me and the OH are (hopefully) in the position to buy a house in the later part of this year. Our rental contract comes to an end in a few months and we are really hoping to buy somewhere.

One of our options is to wait for details to be released on new builds close to us. We were considering some kind of shared equity scheme for these new builds but we may just have enough to put down a 10% deposit and buy it without any assistance from the developers and/or a Housing Association.

One of my questions is, will any banks offer a 90% LTV mortgage on a new build, and if anyone has done this what kind of interest rates are we likely to be offered?

Another question is if we are buying without any assistance what kind of negotiating room do we have with the developer (Taylor Wimpey)? Such as getting x amount knocked off the asking price (I know new builds are generally over-priced), getting the developer to pay for Stamp Duty, legal fees, or any "extras" that could be put into the house?

Or, are we much more likely to be accepted with a 90% LTV on an older property off the open market?

Many thanks in advance.

kingstreet

There are only one or two lenders offering 90% on a newbuild house.

Just_30

kingstreet wrote: »

There are only one or two lenders offering 90% on a newbuild house.

Thanks, do you know who these lenders are so I can look up what the cost is likely to be?

kingstreet

Not able to do that, for fear of being considered "advising." One of the non-advisers will hopefully be along later to make a suggestion as to who you could research.

VortexSteve

Take a look at the NewBuy scheme - http://www.taylorwimpey.co.uk/special+offers/newbuy/

There are 5 mortgage providers on board, although this does vary by developer. This is aimed at 90-95% LTV mortgages.

Just_30

Bump...

Anyone else got any thoughts or experiences?

missyp284

Hi, I believe the main lenders for 90% LTV on new builds are Nationwide and Halifax.

Their criteria is pretty tough though.

kingstreet

missyp284 wrote: »

Hi, I believe the main lenders for 90% LTV on new builds are Nationwide and Halifax.

Their criteria is pretty tough though.

Halifax is 80% on houses and flats.

Nationwide is 85% houses, 75% flats.

Newbuy is a different matter. They are both involved in Newbuy schemes.

martinsurrey

if you go down the new buy route, you have zero room for negotiation, you WILL pay about 5-10% more than if you walked and were just a normal purchaser.

Brock_and_Roll

Personsally, if I had the 10% deposit I would avoid new build. Firstly once the "new build premium" has worn off you will find yourself with little or no equity and potentially trapped. Secondly, if the other properties in the development are being sold to share ownership, housing associations etc then this might store up problems down the line which will effect the value.

This sounds snobbish but this is the most important purchase decision of your life.