Stamp duty as an incentive? Mortgage Application

Andy3drc

Barratt have offered us a good p.ex price on our place against a new house.They have also offered to pay the stamp duty of the new house. Following these offers we complete a reservation agreement and paid a deposit.

We are buying through the Newbuy scheme and the mortgage is via Santander. My financial advisor (Barratt appointed) has today told me that Santander will not accept any incentives (i.e. stamp duty paid).

The Barratt office is now closed until Wednesday, obviously they've made a mistake.

What are the chances of Barratt adding on the stamp duty to our p/ex offer or deducting it from the sale price?

Do they get a financial benefit offering the incentive as they have, or is it going to be a simple fix come Wednesday? To me it's the same money either way?

New house price: 224k
Px offer: 75k
Stamp duty paid: 2.24k

Thrugelmir

Andy3drc wrote: »

What are the chances of Barratt adding on the stamp duty to our p/ex offer or deducting it from the sale price?

What's the mistake Barratt have made?

You made the decision to place a deposit. So onus was on you to ensure figures stacked up.

Yorkie1

Thrugelmir wrote: »

What's the mistake Barratt have made?

You made the decision to place a deposit. So onus was on you to ensure figures stacked up.

I'd assume at least that their own-appointed mortgage broker didn't realise that his employers' sale offer would be ineligible for the mortgage he found.

Thrugelmir

Yorkie1 wrote: »

I'd assume at least that their own-appointed mortgage broker didn't realise that his employers' sale offer would be ineligible for the mortgage he found.

The broker will independent of Barratts.

sockpuppet

Not quite sure why your advisor thinks they will not accept it?

From Santander current criteria under NewBuy:

Builders may offer sales incentives to prospective buyers to encourage them to purchase their properties. An incentive is anything the builder gives or provides to the buyer in cash or goods.

We will accept up to 5% cash back towards the purchase price (no financial limit) and builder’s payment of the applicant's legal fees and stamp duty only. Any reasonable non-cash incentives, eg white goods, carpets, curtains etc. will be ignored.

kingstreet

sockpuppet wrote: »

Not quite sure why your advisor thinks they will not accept it?

From Santander current criteria under NewBuy:

Builders may offer sales incentives to prospective buyers to encourage them to purchase their properties. An incentive is anything the builder gives or provides to the buyer in cash or goods.

We will accept up to 5% cash back towards the purchase price (no financial limit) and builder’s payment of the applicant's legal fees and stamp duty only. Any reasonable non-cash incentives, eg white goods, carpets, curtains etc. will be ignored.

It's for newbuild in general, not just for Newbuy.

sockpuppet

sorry! - i meant to say Newbuild

kingstreet

sockpuppet wrote: »

sorry! - i meant to say Newbuild

It's fine. The OP asked about Newbuy, so it was legitimate to talk about Newbuy in particular.

martimarti

Hi Andy3drc


Look like you are in a similar situation.
The brokers recommended by barrets I guess it was New Homes Advisors.
I had a recent meeting with theirs representative, the chap was very nice, however his knowledge about mortgages was shocking. I was expecting some thorough discussion and good offers.
Instead I new more about the mortgages and which banks will accept builders gifted deposit then he did.
He offered me a mortgage from Nat West, I have found a better deal from Nat West just searching online.
You have to look at Halifax, Nat West, Woolwith - these banks will accept builders gifted deposit.
Hope this helps