Mortgage on a new build

Arf

hi all,

I'm looking to purchase a property for around 230k, at present i'm on a joint mortgage which will be payed off and re mortgaged with the single person only.. (within next few days)

I'm looking for a 75% LTV (have had a mortgage in princip), but wanted to know would i need to put down any deposits with the developers building the house(s)?

i.e would i have to pay 5% up front (the the developers), then 218500 from my bank/my deposit? if so would that be 25% off 218500? ... or would the bank know its worth x and i've paid y (to the prop dev) so i can still get z %?

what im basically trying to understand is:
230k X 25% is 57500...
but say the developer wants 11500... will i then have to get 218500 X 25% = £54625, thats like 66125...... (11500+54625). :eek:

Cheers

kingstreet

You pay a reservation fee to the developer, normally no more than £1,000 and this comes off the price of the property at completion.

You'll be expected to pay a deposit of 10% of the purchase price to your solicitor in advance of exchange f contracts, with the remainder due just before you complete, together with the legal fees and stamp duty.

For example, if you purchase for £230,000, you'll pay;-

10% - £23,000 ready for exchange

15% - £34,500 ready for completion, plus solicitor's costs and stamp duty.