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90% New Build Mortgage and incentives
tr54vrs
Posts: 38 Forumite
Hi
We are about to sign on the dotted line on a new build house, due for completion May/June.
We had to go 90% route which has limited our options to 2 companies.
Leeds and Skipton
Our mortgage advisor decided to go with Leeds, however the property has been put back to June/July and the documentation has arrived early. Meaning we have to conclude the missives in the next 3 weeks.
This poses us a problem with the mortgage offer only lasting 6 months. Our advisor has then checked and said Skipton offer 6 month extensions if the house isn't ready yet.
All going well so far until I started looking into incentives.
We are getting Flooring an Vinyl throughout + Turf to the rear garden. Approx value £3850. We can choose to use the value for any extras we wish.
It would appear that Skipton don't accept any incentives if the LTV is above 85%. I hope I'm wrong but it seems pretty clear cut.
here is an extract from an intermediaries document:
Builders may offer sales incentives to potential buyers to encourage them to purchase their property.
An incentive is anything the builder gives or provides to the buyer in cash or goods.
The CML incentive form must be obtained before the full mortgage application (FMA) is submitted.
A maximum of 5% incentives are permitted for new build houses where the LTV is 85%
We are about to sign on the dotted line on a new build house, due for completion May/June.
We had to go 90% route which has limited our options to 2 companies.
Leeds and Skipton
Our mortgage advisor decided to go with Leeds, however the property has been put back to June/July and the documentation has arrived early. Meaning we have to conclude the missives in the next 3 weeks.
This poses us a problem with the mortgage offer only lasting 6 months. Our advisor has then checked and said Skipton offer 6 month extensions if the house isn't ready yet.
All going well so far until I started looking into incentives.
We are getting Flooring an Vinyl throughout + Turf to the rear garden. Approx value £3850. We can choose to use the value for any extras we wish.
It would appear that Skipton don't accept any incentives if the LTV is above 85%. I hope I'm wrong but it seems pretty clear cut.
here is an extract from an intermediaries document:
Builders may offer sales incentives to potential buyers to encourage them to purchase their property.
An incentive is anything the builder gives or provides to the buyer in cash or goods.
The CML incentive form must be obtained before the full mortgage application (FMA) is submitted.
A maximum of 5% incentives are permitted for new build houses where the LTV is 85%
0
Comments
-
Never mind
Skipton Definitely don't accept any incentives on the 90% mortgage. Regardless on whether they have a monetary value or not!
Back to Leeds BS then. need to find a way around the mortgage offer only lasting 6 months.....0
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