Help with New build mortgage

bd5410

Hi,
I was just after a bit of advice with our situation.
Made an offer on a new build property on sale for £166,950, tried to negotiate on price but the builder wouldn’t budge as they were making a 5% deposit contribution, although they did agree to carpet and floor the house.


We were looking for a local financial advisor at the time, so the the builder passed us onto one they use, we would have felt more comfortable picking our own but, decided to go with them as they would probably be quicker. So after a few days we went for a 3 year fixed rate 85% LTV (10 % from us and 5% from builders)
We got a Nationwide DIP 3 weeks later, on the condition we upped our part of the deposit to 11%.

We applied for the full mortgage and a couple of days later we received texts, confirming product reservation and the valuation date (17th April). We didn’t hear anything else from Nationwide but, didn’t think it odd as reading on here about the time some of their full applications take to complete. I emailed the advisor a couple of times to check on our applications progress, didn’t get any replies so assumed she was on holiday, so I called the advisors (16th May) and the receptionist looked into our application and said they were still waiting for the valuation.


The financial advisor called me a few days later to say that the property had been valued at £155,950, she said this was down to the property being the first of its type to sell on the development and Nationwide are known to undervalue and suggested we should now apply for a Santander mortgage which has no reservation or valuation fee, to get a second valuation. So now we have now waiting for a Santander DIP, my creditexpert shows a Santander search on 24th May.


Since then we have been in contact with the Person purchasing another one of the type of house we are buying, she has gone through the same financial advisors but is purchasing on help to buy with the Halifax, her valuation was done last week and has come back at asking price £166,950.


We’re just wondering what to do now, just seems like we’re back to square 1, if Santander under value the property as well, what are the chances of the builder reducing the price, as Halifax have valued at asking price? Could we continue the Santander application ourselves or with another broker, as we are a bit disappointed with the current advisor, as she didn’t let us know about the valuation problem for 5 weeks after she did. Do Santander DIPs on new build take as long as Nationwides?

Thanks in advance

Thrugelmir

bd5410 wrote: »

The financial advisor called me a few days later to say that the property had been valued at £155,950,

5% gifted deposit and provision of flooring/carpeting account for the difference in valuation to selling price.

bd5410

Thanks for the reply, we thought about that but the other house of this type valued by the Halifax was valued at 166,950 on a help to buy mortgage but, if they wanted to purchase outright they would have got a 5% contribution too. It will be interesting to see what Santander value at.

We accepted an offer on our current property 2 weeks ago, could we apply for a help to buy mortgage, or would we need to wait until the property is no longer in our names?

FTBSOS

bd5410 wrote: »

Hi,
I was just after a bit of advice with our situation.
Made an offer on a new build property on sale for £166,950, tried to negotiate on price but the builder wouldn’t budge as they were making a 5% deposit contribution, although they did agree to carpet and floor the house.


We were looking for a local financial advisor at the time, so the the builder passed us onto one they use, we would have felt more comfortable picking our own but, decided to go with them as they would probably be quicker. So after a few days we went for a 3 year fixed rate 85% LTV (10 % from us and 5% from builders)
We got a Nationwide DIP 3 weeks later, on the condition we upped our part of the deposit to 11%.

We applied for the full mortgage and a couple of days later we received texts, confirming product reservation and the valuation date (17th April). We didn’t hear anything else from Nationwide but, didn’t think it odd as reading on here about the time some of their full applications take to complete. I emailed the advisor a couple of times to check on our applications progress, didn’t get any replies so assumed she was on holiday, so I called the advisors (16th May) and the receptionist looked into our application and said they were still waiting for the valuation.


The financial advisor called me a few days later to say that the property had been valued at £155,950, she said this was down to the property being the first of its type to sell on the development and Nationwide are known to undervalue and suggested we should now apply for a Santander mortgage which has no reservation or valuation fee, to get a second valuation. So now we have now waiting for a Santander DIP, my creditexpert shows a Santander search on 24th May.


Since then we have been in contact with the Person purchasing another one of the type of house we are buying, she has gone through the same financial advisors but is purchasing on help to buy with the Halifax, her valuation was done last week and has come back at asking price £166,950.


We’re just wondering what to do now, just seems like we’re back to square 1, if Santander under value the property as well, what are the chances of the builder reducing the price, as Halifax have valued at asking price? Could we continue the Santander application ourselves or with another broker, as we are a bit disappointed with the current advisor, as she didn’t let us know about the valuation problem for 5 weeks after she did. Do Santander DIPs on new build take as long as Nationwides?

Thanks in advance

Are you buying from Barratts and in the west midlands? If so, I think I no what development you are on about.. I'm trying to get a MIP.

Best of luck!

bd5410

FTBSOS wrote: »

Are you buying from Barratts and in the west midlands? If so, I think I no what development you are on about.. I'm trying to get a MIP.

Best of luck!

Thanks, we're buying from Miller homes in the north west. Good luck with yours

bd5410

Just an update on this:-

Mortgage adviser put in for the Santander mortgage, she phoned a week later to say we have a decision in principle as long as my partner provides payslips (previously she got a letter from her employer), so we got payslips from my partners employer. Adviser phones yesterday and says Santander have declined our mortgage as they were not happy with my partners payslips, up until then we were told all is going well when we asked the adviser for an update. Now the adviser wants to put in a Halifax mortgage application for us ( 3rd application in 3 months), my credit file shows she has done a mortgage quotation from Bank of Scotland. The adviser tells us she is confident this application will be all OK, (she didn't mention she ran a quote already), I'm not confident, we earn £35,500 between us (partner works part-time), with 2 dependents, we have 17k deposit + 9 K from the builder, we need to borrow around 140k, the property is £166,950.
I would rather go back with the Nationwide mortgage offer and pay the difference between the purchase prices and the valuation, we have just enough in an emergency fund to do this, we didn’t really want to touch this but, this is the only property we wanted to buy. I received a text from Nationwide on the 11th June, to say that the "application had been cancelled as request, please contact us to resume the application" (must have the adviser )

Any ideas how likely it is that the Halifax application would be successful, considering the amount of recent applications we have made and the amount we need borrow ?
Thanks

bd5410

Could any of the mortgage advisers see if a mortgage application with the Halifax would be likely to be successful given the figures in the post above and the number of recent applications?

Thanks

amnblog

Very disappointed to hear that you are having so much trouble with this. Also that your mortgage adviser seems to be taking actions without referring to you first.

One thing that does puzzle me was that I didn't think Santander were offering products for the Help to Buy market as yet. (perhaps one of my colleagues on here could put me right on that).

Halifax are likely to be a little less strict than Nationwide although we cannot second guess the chances of success for the original poster.

Please note that the Halifax product is priced well above the equivalent Nationwide product (and has higher fees).

Therefore, the Nationwide 'bird in the hand' might be the best option here.

Also, go back to the builder again querying how they can justify the price and see if you can get some more shaved off.

bd5410

Thanks for the reply amnblog, the products we were after was not a help to buy product, the purchase is a straight buy with a 5% builders contribution. I didn't actually receive any info about the Santander mortgage she told me the figures over the phone and she said she would put it in an email but, didn't receive the key facts sheet, even after chasing

kingstreet

AIUI its 5% builder's deposit, not HTB.

amnblog

It's that word 'Help' in the post title.

Please disregard my post of 10:27

I thought we were talking about help to buy.