NewBuy scheme for David Wilson Houses

sparklystar_2

Can anyone out there offer some advice? We are thinking of part exchanging our house for a David Wilson House but it is likely that the part exchange valuation will give us enough equity to get a 85% mortgage and afford stamp duty . I'm hoping to negotitate stamp duty and some money towards carpets etc, but still think we only have a 10% deposit. Can anyone give any advice on NewBuy mortgages for David Wilson Homes? The house is under £500K but I'm not sure if that means we automatically qualify. I've looked on the NewBuy website already and we seem to meet all the criteria.
many thanks
sparklystar

JPB123

If you can get a 15% deposit you won't need NewBuy. You can put down between 5% and 9.99% on NewBuy.

There are special deals available at 90% for David Wilson Homes as part of Barratts.

If you do go for NewBuy they won't be able to pay your stamp duty as there are no incentives allowed. You could have the flooring, but no upgrades.

I am an Independent Mortgage Adviser

You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

droiderm

Is that true ? I thought for example nationwide only disallow financial incentives.

sparklystar_2

Thanks for replies, does anyone else know details of whether it is impossible to have a Newbuy if getting stamp duty paid as we are likely to need to do both

bclark

That is true with newbuy, only certain incentives are allowed.

I am buying a new build, not on newbuy and Nationwide are fine with me getting financial inventives.

kingstreet

You need to establish the lenders and brokers aligned with the builder on Newbuy. Once you've done that, you can study the criteria of the lenders, products and criteria open to you.

kingstreet

As an example, here's Abbey/Santander's;-

http://www.abbeyforintermediaries.com/content/mortgages/newbuy

We’re committed to supporting the Government’s NewBuy scheme and have launched a range of higher loan to value mortgages for new build properties to help your clients who are looking to borrow between 90-95% LTV.

Our NewBuy mortgages are available for first time buyers and home movers looking to buy a newly built home from the following developers:

Barratt Homes (David Wilson Homes and Ward Homes)
Berkeley (St George, and St James)
Bovis Homes
Persimmon (Charles Church, and Westbury)

Please note that our NewBuy mortgages are only available to intermediaries who are nominated by one of the developers above.

Any NewBuy applications received by an intermediary not nominated by one of the developers above will be declined.

Before proceeding with a NewBuy application you must ensure you have taken your client through the NewBuy Scheme leaflet below so they understand what the scheme involves. This document also includes the scheme’s eligibility criteria.

Scheme guide;-

http://www.abbeyforintermediaries.com/library/lib_178.pdf

RenStar

No financial incentives are allowed with Newbuy, other than PX. If you have 15% deposit than you don't need Newbuy surely? Newbuy is for those with between 5-10% deposit. If you have 15%go with that as you'd be in a better negotiation position with the builder (though maybe not as much if you also want PX). Newbuy costs the developer money as they have put a certain percentage of the property value into and indemnity pot for the banks to use as security. Even if the builder was to agree to money towards your stamp duty or deposit paid etc (which they won't cos they can't) the lender won't accept it with Newbuy. You can ask for non financial incentives such as white goods and upgrades and see what they say.

sparklystar_2

many thanks for all the helpful advice - it is so helpful to know this information before I return to try and negotiate with the sales officer this week I hope we will have enough for a 15% deposit but it will depend on the px price we are offered. I think this seems like the best solution for us though and then to try and get the stamp duty paid. thanks again.

sparklystar_2

...I've just read the santander info sheet - many thanks for the link to it - if I ask the builder to reduce the price of the property is this classed as an incentive? They mentioned that they could negotiate on price but I'm unsure whether this means we couldn't access the newbuy scheme. having just looked at our figures, unless the px is v generous, we will need to apply for the scheme. I've read they can't offer cash back but if the price is reduced is this the same thing? I can't get my head around it If we can't ask for the stamp duty, or the price to be reduced the house seems very expensive, even with the convenience of a px
sparklystar

kingstreet

No. A price reduction is not an incentive.

Using a price reduction as part of your deposit would be an incentive, but as you may not need Newbuy, this may be helpful.

For example, you put down 10% and the builder gifts you 5%, giving you a 15% deposit in total.

Many lenders offer 85% mortgages on newbuild property.