PO 5 year fixed mortgage - new builds applicable?

lawlie

Hello all

I've been shopping around for a good deal. At present, I can only really afford a 5% deposit on a property around £300k or a 10% deposit on a property around £250k.

A property hasn't been settled on yet, but one of the deals which I have seen is the post office 90% LTV five year fixed rate mortgage. However, nowhere on the website does it seem to tell me whether this would apply to new build flats (in case I see one, as mentioned - property hasn't been decided on yet). I suspect that would be too good to be true but could anyone confirm?

I had also been looking at the Clydesdale 95% mortgage but they confirmed today that new build flats require min. 25% deposit.

Thanks!

Blondygirl

Hiya,

Found this:-
We do not accept:

• Loans over 80% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation. for houses or loans over 75% LTVThis stands for Loan to Value. It’s the amount of mortgage expressed as a percentage of the value of the property or purchase price, whichever is lower. For example, a mortgage of £80,000 on a purchase price of £100,000 would be 80% LTV. If the valuation of the property is lower than the price you've agreed, the LTV will be based on the valuation. for flats and maisonettes for properties that are newly constructed (built or converted within the last 12 months), being purchased for the first time since completion or conversion, or subject to first registration of a lease

http://www.postoffice.co.uk/moving-home#lending_criteria

HTH

lawlie

Oops, clearly my research skills are lacking! Thanks so much. If anyone has recently seen any 90% LTV mortgages for new builds, please do share...

kingstreet

There are one or two lenders who will do 90% on a house, but you won't get 90% on a newbuild flat unless it's on the NewBuy scheme, then you are stuck with the lenders that particular builder is signed up with.

Typically, the maximum LTV is 75%, possible even less without NewBuy. You could also use the HTB Equity Loan scheme, so you'd only need a 75% mortgage.