First Time Buyer, help us please !!

Saronn

Hi guys

I would really like some help please.

I am a First Time Buyer currently wanting to buy a new build with someone who will be classed as a 'home mover' , she has a mortgage with her ex and will still be on the mortgage once she moves.
We have seen a new build property but we've only got a 10% deposit.

I've looked around on the net and it looks like most high street banks won't offer mortgages based on 90% ltv on a new build

Are there any lenders that would be able to help us?
Thanks.

ACG

If she is still down on the old mortgage, the repayments for that will be taken into account for the new mortgage even if she isnt paying them.

Will you still pass affordability?

Saronn

ACG wrote: »

If she is still down on the old mortgage, the repayments for that will be taken into account for the new mortgage even if she isnt paying them.

Will you still pass affordability?

Hiya, yes she has passed affordability before when we were looking around for mortgages by cov building society, however i assume that was on a 2nd hand property.

ACG

sorry just clarifying you have answered the question i asked as its pretty rare that is the case.

When purchasing the new property, coventry or any lender have said that both yours and your partners income will cover your new purchase AND the monthly repayments on the existing property?

Because your partner is remaining on the existing property, if her ex stopped paying the mortgage the lender would come to her for the money - so they will want to know she can afford both if that time ever came.

Saronn

ACG wrote: »

sorry just clarifying you have answered the question i asked as its pretty rare that is the case.

When purchasing the new property, coventry or any lender have said that both yours and your partners income will cover your new purchase AND the monthly repayments on the existing property?

Because your partner is remaining on the existing property, if her ex stopped paying the mortgage the lender would come to her for the money - so they will want to know she can afford both if that time ever came.

I understand. The mortgage advisor put all this on an application form on the internet and made a soft credit check with Cov BS to see if we would pass affordability. They did not accept straight away and the 'application' was sent to an underwriter. I think she then spoke to someone at cov bs and they said they would make a decision in a 48hrs or something. They phoned back accepting the 'application'.
The lady I am applying with doesn't really have many out goings apart from the mortgage & she's on a decent wage with a good job.

ACG

OK, thats fine then.

Is it a flat or house? Houses are ok in the main as far as im aware. Flats usually have a limit of around 75%.

Saronn

It's a new build house worth £144k.

kingstreet

The existing mortgage is an added complication, but there are very few, if any, lenders offering 90% on newbuilds. Most top-out at 80-85%.

It might be a good idea to ask the builder about a 5% builder's deposit to get you to 85% or have a look at the HTB shared equity scheme to increase your deposit. Ask the builder if it's an option for those with an existing mortgage in the background.

Saronn

Hi thanks for your reply.
I thought i'd give an update on my situation to help anybody else who may find themselves in the same position as me.
I've just spoken to Skipton Building Society and they said the other lady's mortgage would be calculated as an outgoing.
So we went through the affordability and passed it.
I havent made an applciation yet because they do not do soft credit checks and at this stage without speaking to my mortgage advisor (who I can not get through to) I do not wish to have any credit searches done.
So fingers crossed!!!
Oh and another thing, the lady on the phone stated they would treat our application as a first time buyer application because i'm a FTB...this I found abit odd...but hey ho she seemed to know what she was talking about and gave me loads of info.

Saronn

Update: The builder gave us 5% gifted deposit which meant we had 15% deposit and we ended up applying to Nationwide.

bigadaj

Saronn wrote: »

Update: The builder gave us 5% gifted deposit which meant we had 15% deposit and we ended up applying to Nationwide.

Vendor gifted deposits aren't popular with lenders. This might be treated a s a starlight discount, I.e. 5% reduction form list price, so you might need to calculate your deposit on this basis which would presumably give you say an 11% deposit.