new build 15% or 20% deposit options mortgage

missma

Hi


We are currently considering booking a new build semi near Belfast Northern Ireland, won't be ready till May (I think this limits are mortgage choice). Anyway property is about £191500 plus £10000 for garage. We are undecided whether to put a garage on property. These houses are turnkey but we know we will need to upgrade on some things e.g. fireplace. Currently sale agreed on our own property. Probably exchange in January, and hope to rent short term. (fingers crossed sale has fell through 3 times due to time wasters)


Anyway we both have excellent credit ratings, we had a mortgage promise from Nationwide which is now not valid, also think rates have changed. Our mortgage broker has completed a promise with Accord based on 15% deposit rate is 3.29% fixed 3 years but I think after term goes up to 5.99%.


I am also due to go on Maternity Leave at end of January which complicates things, need to ensure we have money to live on!!!


We have about 33k in savings and should be getting about 8-10k from house sale (have a feeling buyer is going to ask for reduction due to slight damp in survey so airing on side of caution). Anyway one of our parents has now offered to give us up to 20k gift to help us with move. We are reluctant to take full amount but are considering, now going for a mortgage with a 20% deposit.


We also are factoring about 6.5k to cover solicitor, estate agent, pay first year rates upfront (due to maternity) and stamp duty.


Will the fact we have a current mortgage promise, mean we are less likely to get another one at 20% deposit? What would a good fixed rate be at 20%.


Anyone with any advice or help?
Anything we have not factored in???
Do mortgage company need to know I will be going on Maternity Leave??


We were thinking life and mortgage insurance would be no more than £140 a month, both non smokers and probably go for decreasing term.


Thanks in advance

saverbuyer

I think I can guess your broker. There's a particular one in N.I. that seems to push everyone towards Accord. With an SVR of 5.99 and buying a new build, I think I'd be inclined to go with someone else.

I believe all 4 of the N.I banks (Danske, Ulster, BOI and First Trust) unlike GB, do not have LTV restrictions when buying new build. Shop around; there are more options than accord.

I’m not sure about the maternity leave, but I’d imagine you’ll have to tell the lender about future, predictable changes in circumstance.

missma

send me a pm with name of broker please.


Though I think they felt rates were best with them currently and on previous visits accord was not mentioned. They have never offered us that option before, our current mortgage is with accord due to poor equity in property at time of re mortgage. I think 5.99% coming out of mortgage term is too high myself.

missma

any other opinions??