"New Build Premium" & HTB Equity Loan

[Deleted User]

Hi all

I'm aware there is such a thing as a "new build premium" - so some banks only lend say 85% LTV.

Obviously the HTB Equity loan takes the bank's LTV down to 75% anyway, but I was trying to work out if there is a consensus as to what this "premium" is?

IF the "New Build Premium" does exist, similar to new car Depreciation, then surely if the house was re-valued in say just 6 or 12 months to look at a Equity Loan repayment, as it's no longer a new build, then the value is incredibly likely to have dropped? (hence the banks only wanting to lend 85% LTV in the first place) Especially with Brexit etc

So a £175k house now, assuming say even just a 5% new build premium, would be worth £166,250 when revalued? This then makes it highly likely that the equity loan will be paid back at a lower value than it was initially taken at?

Thus a £35k equity loan is then just being paid back at £33,250 (assuming the valuation is accepted as valid by the relevant parties) - plus the couple of hunded in fees of course.

In that case, surely the Equity Loan is worth taking purely to lower mortgage LTV initially and/or increase affordability/make it easier to get a mortgage etc? Especially as it's virtually no cost for the first few years. Obviously if you hold onto it for say 10 years the costs really stack up, but I'd imagine the vast majority of buyers will repay it long before this!?