Banks now asking for 15% deposit on new builds?

lampard

Hi All

I had a surprising number of calls with Santander and Barclays where even the adviser on the phone was shocked to hear they require 15% deposit now if the house is a new build.

I am based in Northern Ireland and found many government schemes do not apply here.

Has anyone else got a new build in Northern Ireland with a 5% deposit?

The minimum Ulster Bank wanted is 10% but they are happy to try and find a solution.

One option a family member has done themselves is to have one partner apply for the mortgage and the other apply for an interest free credit card and then use the card to pay the developer directly 5% then show the bank you paid 5% and prove you have the remaining 5% in your bank to make 10%. As I say this is successfully been done but I was not sure if this was common or not.

Going to speak to a broker tomorrow who seems baffled by this 15% story and is more the confident we can get a 5% mortgage quite easily. I wish I had his confidence.

Thanks

Dandytf

not a new build

though i was qouted 15% deposit when i sold and purchased a flat 2009 Scotland

sound like 85% min is making a return?

kingstreet

Many lenders have for years limited their lending on newbuilds to 75% to 85%.

There's a small number of lenders lending 90% and I can think of one offering 95%.

No idea if they lend in Northern Ireland. Contact an experienced newbuild broker in the area.

dunstonh

New builds tend to lose value the minute someone buys one. In a rising market, that is not normally a problem. In a falling or stagnant market, that can be an issue as you are immediately put into negative equity.

Going to speak to a broker tomorrow who seems baffled by this 15% story

They shouldnt be. Restrictions on new builds have been commonplace for many years. Although not all are as heavy as others.

sultanabran

I got a 90% mortgage with Newcastle Building Society on a new build. Not sure if they lend for properties in Northern Ireland though.

brit1234

A 5% deposit on what is becoming a falling market isn't sensible. I expect lenders to tightern up their lending standards in this downturn to protect them selves afterthere were the biggest price falls in N. Ireland last time.

lampard

Two banks in Northern Ireland willing to do new build with 5%

First Trust and Danske Bank

Maybe just maybe this could be the final two before the end of 5% for new homes here.