FTB...advice welcome :)

Fiona255

Hi All,

My partner & I have recently just reserved a new build house and we are looking to do the help to buy scheme as we've managed to save over 5% deposit!

The house isn't ready until June 2015 and we have received an Agreement In Principle from HSBC. We're getting a lot of pressure from the sales woman who we have reserved the house with to start our mortgage application & to arrange solicitors but I can't help but think it's too early and they just want a sale already?!

Realistically when should we officially sort out our solicitor and when should we start the mortgage application?!

Sorry if I'm being vague, this whole process is totally alien to me!

Thanks

ACG

Mortgage offers are usually valid for 6 months.

Having solicitors in place isnt a problem but applying for a mortgage seems a little bit too early, especially as that date is not set in stone - it could slip.

kingstreet

HSBC doesn't lend on HTB - Equity Loan.

Fiona255

The advisor I spoke to at HSBC said that they do offer a HTB scheme - 95% but you need a min deposit of £10k which my partner and I have.

kingstreet

Yes. That's HTB - Mortgage Guarantee.

Different scheme. If they will offer HTB - MG on a newbuild, that's fine as many lenders don't.

kingstreet

http://www.hsbc.co.uk/1/2/mortgages?mtp=search&WT.mc_id=HBEU_HSBC_PPC_Brand_Mortgages__DR_Google_4&WT.srch=1

Do you lend on new build properties?

Yes, we may lend up to a maximum of 85% Loan to Value (LTV) on New Build Properties. If you have a an LTV greater than 75% you will be required to have a minimum deposit of £25,000.

A New Build Property is defined as:

a building that has been built in the last 24 months which includes property bought directly from a builder or developer
a property that has yet to be occupied for the first time
and/or

a property that is yet to be occupied in its current form, for example following a renovation or conversion

The property you're purchasing must have an HSBC recognised satisfactory Structural Defects Warranty.

http://www.hsbc.co.uk/1/2/mortgages/help-to-buy

Our 5% deposit mortgages are not available for new build property.

jls85

I'm not sure if this differs between builders, but I'm in the same situation (have reserved a new build through Persimmon) and I've been told that my reservation is only valid for a month. Therefore, I have to go through with the mortgage application and get a formal offer in that time for me to keep the plot. I was told by my broker that this may mean I will need to resubmit my application if the house is not ready in 6 months (mine is due to be ready between April and June next year). This is apparently the only way to ensure you keep it, which isn't great but you may need to if your builder are the same.

Beckyy

I certainly wouldn't apply this year. A lot could change between now and then, even things relevant to your application (jobs, salary etc.).

kingstreet

There are lenders with longer offer periods open to builders and their brokers. For example, the newbuild panel exclusives of one lender I can think of have an expiry date of 30 June 2015 for current applications.

Others will extend an offer beyond the end of the six months, subject to the valuation being refreshed.

Nationwide is one to be avoided if you have any doubt over the build finish. Six months, with two weeks maximum extention is all you get. After that, it's a new application.

ACG

And Woolwich. The offer date is 6 months from date of application... which I found out after submitting a case recently.

T1NKERB3LL

Hi


Me and my partner have also reserved a plot with persimmon.
Have you been offered any 5% builders gifted deposit?
I am very wary of this and unsure whether to accept this or not


Thanks