Getting a mortgage on a new build without using help to buy

Confused_mummy_2

Hi all, just wondering if anyone can help...
After 8 long months on the market in our current property with only a couple of viewings and no offers we looked into part exchanging our flat with a builder, they offered us a fair Ish offer which we decided that based on a previous meeting with mortgage advisor we would go ahead. We went back to the bank full of excitement that things were finally happening only to be told that as we were looking at buying a new build and not using help to buy that our mortgage offer would drop by £40,000. Is this right? Can we be penalised for not using the scheme to buy a house? We were assured that to buy a non new house the original offer was still in place. We can't use help to buy as we want to part exchange and that stops us meeting criteria. does anyone have any experience of this or know of any companies that will lend without help to buy? Thank you in advance.

amnblog

This simply sounds like the rules of that particular lender - loan to values on newly built properties can be capped lower than standard.


Speak to a mortgage broker about other options.

Paully232000

This was, for instance, one of the stipulations of our mortgage provider, on new build homes, max 85% LTV.
Guess it is the same/similar with other mortgage providers and the reason for the drop in amount, and not anything to do with HTB.

Confused_mummy_2

Thanks guys, will go and see some other lenders, hopefully they will be able to help😃

kingstreet

What is the purchase price and how much do you want to borrow?

BTW the builder can offer an assisted sale on HTB - Equity Loan, as they can't offer Part-Ex.