mortgage for 1 year old flat

thisuser

Hi,

I am looking for some advice about mortgages on fairly new builds that have been lived in for less than a year.

under what conditions is a property considered 'New Build'?


I have had an offer accepted on a 1 bed flat that is 1 year old with short tenancy previously.

In the process of applying for a mortgage and have just found out this property is considered new build and would need at least 15% deposit (inquiry from one lender).

I only have 10% deposit, based on basic information and property details one lender said they can only give me 85% of the current property value.

Has anybody had any experience of this sort of situation?

I am really keen on buying this flat and would like to know if this is likely to be the same reaction I will get from every lender.

ACG

Its probably worth getting a broker on this.

I dont think it would be classed as a new build as it has been lived in... but being honest I have never had an enquiry like this so I could be wrong.

If it is, then getting 90% is going to be difficult.

thisuser

Thank you for the response ACG, I will ring up the broker tomorrow to ask questions.

The other option is mortgage guarantee help but the rates seem high, so i don't want to consider that option yet.

scoly

thisuser wrote: »

Hi,

I am looking for some advice about mortgages on fairly new builds that have been lived in for less than a year.

under what conditions is a property considered 'New Build'?


I have had an offer accepted on a 1 bed flat that is 1 year old with short tenancy previously.

In the process of applying for a mortgage and have just found out this property is considered new build and would need at least 15% deposit (inquiry from one lender).

I only have 10% deposit, based on basic information and property details one lender said they can only give me 85% of the current property value.

Has anybody had any experience of this sort of situation?

I am really keen on buying this flat and would like to know if this is likely to be the same reaction I will get from every lender.

A quick google indicates the Leeds (as one example) would lend 90% on a 3 year fixed, or even possibly 95% on a 5 year fixed

http://www.leedsbuildingsociety.co.uk/mortgages/high-ltv-mortgages/#tab:0

Where have you looked?

Edit: Also looks like the Chelsea would go to 90% on a 2 year fixed or 95% on a 5 year fixed

HSBC would go to 90% on a variable

Are you a first time buyer?
If so, looks like the Post Office will do 95% on a 2 year fixed
Clydesdale will do 95% on a 3 year fixed
TSB will do 90% on a 2 year fixed.

thisuser

scoly wrote: »

A quick google indicates the Leeds (as one example) would lend 90% on a 3 year fixed, or even possibly 95% on a 5 year fixed

Where have you looked?

I have looked at HSBC and had a decision in principle saying max they would lend is 85% LVT due to it being considered new build.

Thanks, I'll take a look at Leeds building society now.

thisuser

I am a first time buyer, I don't think the 90% mortgage is an issue its just the flat is being considered new build and would either need to get an expensive 5% mortgage or have atleast 15% deposit.

the fact that its been lived in means its not really new build but its a year old and some consider it new build.

I can't find information on what conditions make a property new build, it would be useful to know before I approach another lender.