95% Mortgage on a New Build Northern Ireland

emmsyg

Hi, I was wondering if anyone had had luck obtaining a 95% mortgage on a new build property in Northern Ireland? The shared equity scheme available in England doesn't apply here, so although we can apply via Help to Buy using our ISAs, and we are technically able to borrow up to £160000, we are struggling to find a lender for a mortgage of £113200 with a deposit of £6800, because most lenders want 15-20% deposit on a new build.

Had this been a preowned property of the same value we wouldn't have any problems so it's immensely frustrating! I've been in touch with a couple of mortgage brokers to get some opinions, but was curious to hear if anyone else had been successful in securing this equity for a new build. We are both first time buyers, with me in permanent work and my partner about to be renewed on a 2 year contract (having already been with the same employer for 2 years)

I can understand why most banks are doing this, as many new builds can be very overpriced, but the ones we are looking at are actually seem at the right price for the area (we've been looking for a while!). Any success stories would make me feel better!

kingstreet

You need to speak to experienced newbuild brokers in your area.

There are two or three HTB Mortgage Guarantee products available on newbuilds in England upto 95%. I don't know if they lend in Northern Ireland as I don't have to do business there.

Experienced newbuild brokers in Northern Ireland should be able to answer that.

saverbuyer

I believe Danske will offer 95% mortgages on new build. Not HTB.


Go online and ask them on their online chat section of the website.


The reason they do this on new builds, is because they drop in price when they are no longer new.

emmsyg

Thanks - you're correct about Danske, however they won't consider my partner because he's on a 2 year fixed term contract - they want permanent status only, which is unfortunate.

Our broker has advised that there are 2 lenders who will do this, and he's contacted them both and they said they will consider the two year contract, so waiting a phone call back today! Not sure who the lenders are as yet, but will post when I find out for anyone in a similar situation

saverbuyer

emmsyg wrote: »

Thanks - you're correct about Danske, however they won't consider my partner because he's on a 2 year fixed term contract - they want permanent status only, which is unfortunate.

Our broker has advised that there are 2 lenders who will do this, and he's contacted them both and they said they will consider the two year contract, so waiting a phone call back today! Not sure who the lenders are as yet, but will post when I find out for anyone in a similar situation

It's probably a N.I. based bank/BS. Ulster, Progressive or First Trust. The English ones tend to limit LTV on new build. Its never really been the case here.

emmsyg

Not been confirmed by my broker yet, but I've been on the phone with First Trust and they do 95% on new builds, and are willing to consider fixed term contracts, although the amount on offer is tight, but is enough. This is largely because I'm also pregnant, which kills the affordability calculator!