4.89% on my new build (88% LTV)

elbii1

We were very restricted in applying for a mortgage firstly we are purchasing a new build and secondly my partner is still in his probation period at work. After ruling many out, we were accepted at Halifax in January but at a rate of 4.89%. I was quite disappointed as we had found one for 2.49% but at the last minute were told they could not take it any further because of the probationary period.


Our new build isn't due to be completed until the end of May. If interest rates continue to decline can/will Halifax offer us a newer better rate even though the offer has already been issued?


Thanks

kingstreet

Why 4.89%?

What's the loan to value?

somethingcorporate

88%, it's in the thread title.

elbii1

We have 12% deposit so looking at 90% LTVs

kingstreet

I've just seen it, thanks!

At 88% you are above what Halifax normally lends on newbuilds, so you must be buying from a panel builder and newbuild broker.

At this level, there is little competition for business with around three lenders offering deals upto 90% on newbuilds.

The 2.49% thing was nothing to do with probationary period, but about the LTV and it being newbuild. I don't know any lender offering 2.49% at upto 90% and definitely not on newbuild.

In fact, that rate is lower than Halifax is offering for HTB Equity Loan newbuild cases (2.74% and 3.29%) where you are borrowing 75% or less!

elbii1

Thanks. The 2.49% was advertised by a small building society - Leek United andI believe this has now decreased to 2.39%. We went through quite a few interviews etc. with them and there didn't seem to be a problem with the new build aspect but I wasn't aware of my partners 2 year probationary period (standard in the police force) as he had passed all training and had been there for near on a year.

I appreciate your post, seems that new builds are still a very difficult market...thanks again.