Paying stamp duty

kingstreet

See if the builder will give you a cash incentive to cover the stamp duty, then you keep your 85% LTV but you'll need a lender which accepts cash incentives.

I'm not sure if either of the two I can think of accepts cash incentives.

You can't go for a 90% mortgage because no-one will lend 90% on a newbuild flat.

Is the builder registered with the HCA for the Help To Buy - Equity Loan scheme?

amnblog

Why have you got an offer in principle from Halifax when you only have 15% deposit?

Idiophreak

Greggy wrote: »

Hi amnblog, I can see how it might look like that!

I don't think that is the case though. Woolwich are prepared to lend us just over 1 million based upon salary and outgoings, and we have an agreement in principle from halifax that would lend us 850k. We are only looking to borrow 650k or so, which is well within our limits.

We just face a short term capital squeeze that I'm trying to get around. The mortgage repayments from woolwich are 3.1k/month, but my partner and I have a combined take home of just over 10k after tax. That's why I think a loans might be an option.

Of course, we could just withdraw our offer, save up another 20k or so, and then find a new place, but we are v keen on the flat we have already found.

Thanks, greggy

We're going through the same thing at the moment...good affordability, just a squeeze in the short term. (albeit with rather smaller numbers!)

Called our bank, they authorised an overdraft on our current account to cover the stamp duty...no credit check needed. Sorted. Will just clear the overdraft in the next couple of months. (worst come to worst, we'll take a loan to cover it once we're all moved in etc)

Mortgage_Mark_2

amnblog wrote: »

Why have you got an offer in principle from Halifax when you only have 15% deposit?

^ This.

Halifax won't lend at 85% on a newbuild flat, unless part of Help to Buy!

amnblog

Mortgage_Mark wrote: »

^ This.

Halifax won't lend at 85% on a newbuild flat, unless part of Help to Buy!

Hence my question as purchase is over H2B range

Mortgage_Mark_2

amnblog wrote: »

Hence my question as purchase is over H2B range

Yep - I was agreeing with you.

Greggy

amnblog wrote: »

Hence my question as purchase is over H2B range

I guess this could look a little strange! We got the offer in principle before finding a property, as we were told that this would help to have an offer accepted.

Thanks,
Greggy

lawlie

Greggy wrote: »

I guess this could look a little strange! We got the offer in principle before finding a property, as we were told that this would help to have an offer accepted.

Thanks,
Greggy

That's not that unusual, but sadly you might find that the same decision won't apply for new builds. Are there Ts and Cs you can check?

Greggy

lawlie wrote: »

That's not that unusual, but sadly you might find that the same decision won't apply for new builds. Are there Ts and Cs you can check?

Unfortunately it wouldn't apply. We went with halifax because they go to 90% in our price range, but it doesn't apply to new build flats. It also doesn't apply to any flat (freehold) which is one or more than 4 flats in a block (we are one of seven).

kingstreet

As I said, there are a couple of lenders who will go to 85% on a newbuild flat but I don't think either will accept cash incentives.

I suspect £770k would be out of range of one of them too.