5% vs 10% - Cash Incentives

laguna_1

Hello all,


I am in the quandary of saving for a house (currently renting) and being a first time buyer, the rates for LTV of 90% & 95% are huge...2.2% to 3.9%.


I am not far off getting to the 10% deposit and will be there soon but pushing for 10% I will struggle with the LBTT.


Cala homes do contribute to stamp duty at times and I believe this is only possible with some lenders and has to still be at a 90% LTV as opposed to 95%. Cala may pay it all but may only pay some. Ultimately whatever the level of cash incentives they offer, the less of a loan i will neeed. I don't have enough for 10% deposit and also stamp duty.




Questions I have are:-


Figures wise


Salary - 95k
House @ 10% deposit
Sale - 400k
Mortgage 360k


Debts
PCP - 250pm
Virgin MBNA - 4.5k balance 0%


1) Does anyone add Stamp duty to the Mortgage within Scotland
2) Has anyone got a loan 3 - 6 months prior to a AIP, to help boost up funds for stamp duty? I am fortunate enough to be on a chunky salary with minimal debts, therefore affordability wise...I have been told I can have a small loan running in background to help boost funds up...for whatever stamp duty cala don't pay for me....


any advice appreciated...


sometimes I think just go with the the 5% and pay the extra -£300 mortgage payment and then remortgage once the initial deal is over, but sometimes tells me that getting to 10% whatever way I can, is better as:-


Lower rate initially
also allows better bargaining int erms of cash incentives with new buildes

kingstreet

Most lenders I can think of do not accept builder cash incentives at 90%, let alone 95%.

laguna_1

Hi there, thanks for the response.

You are right markets limited but I've been assured:-

I) nationwide do at 10% ( contribution to deposit) Rate 2.2%
2) Clydesdale do at 10% ( need to find out more) tbc

3) Halifax do at 10% - both building and cash Rate 3.%
Halifax do at 5% but only builder extras - non cash Rate 3.9%

Could really do with some advice on 5% or 10% (achieved by way of loan tfor stamp)

kingstreet

Nationwide max LTV for newbuild flats is 75%, 85% for houses.

New Build Flats & Houses - Valuations
The maximum loan to value on New Build Flats is 75%.
The maximum loan to value on New Build Houses is 85%.

Halifax max LTV is 80% for newbuild houses and flats;-

Maximum LTV on new build properties (houses and flats) is 80% (75% if the scheme type is a second home loan or buy to let).

unless it's a top-twenty builder/broker then 5% cash incentives are permitted at 90%;-

At 90% LTV we accept 5% customer deposit plus 5% Builder funded deposit to make up the overall 10% deposit.