Advice with mortgage and building developers

smead1991

I am looking at buying a new build with a HTB schemes. I have had a valuation done with Barclays who valuated 10k under the asking price. We changed to Santander who also under valuated it by 13k. Doing this at the advice of the mortgage broker and the developer.

Now we are advised to go for another application and we chose Halifax due to monthly repayments as the expense of £200 upfront costs. When will it stop do i have to keep applying until the developer gets the result they want. Anyone who has had this issue before can you give some advice please.

It just seems regardless of my monthly repayments I have to bend to the will of the developer and potentially overpay the market value. Meaning when i come to sell the property my profit margin will be 10k less which is alot of money. And i will owe the government even more money.

Thanks in advance.

amnblog

It stops when you decide you wont overpay for the property.

You have the option to walk away if the builder will not sell at the current market value.

Check when your Builder's financial year ends. If you are fortunate it will be 30th June of 31st December and they will be keep to get sales exchanged before the end of the year of half year. This makes then likely to me more flexible in terms of price.

(Incidentally, the Broker did not happen to be referred by the Developer did they?)

kingstreet

I suspect you will get the same Esurv surveyor Barclays used when you apply to Halifax, so expect to get more of the same!

Viki2410

Why do you want to overpay? The developer will not force you to buy the house from them.

Have you been to them and shown them the 2 reports that undervalue the property? They may well knock money off the property if they know that at least 2 major banks will not lend against them.

If not, then walk away. There will be other properties

spadoosh

Youre on a fast track to negative equity.

HTB isnt really that helpful. Its just delaying buying a portion of your house until its more than likely more expensive.

New builds are typically overpriced anyway, youll take a hit on the 'new' value. Assuming the valuers have taken that in to account....

... You want to pay more than the overpriced valuation.:eek:

I really hope it works out for you, please know exactly what youre signing up for.

foxy-stoat

Scares me that they push a 95% mortgage for overpriced houses as a good thing.....and 20% of that is deferred for 5 years.....you just need to hope that the property increases in value along with your earnings and the cost of living doesn't overtake any increases earnings or you will never repay the equity loan unless you sell, at then you realise that you have very little equity left in your home.

getmore4less

Halifax can be a poor choice as the more you pay of the higher there rates get for retention deal what you win on LTV you lose on small borrowings.

https://www.halifax.co.uk/mortgages/existing-customers/switch-to-a-new-deal/

Best option will be wait to years and buy the house of someone and let them take the new build and overpriced hit.

Offer them less for the house and walk away if they won't take your lower offer.

ethank

You should now push back to the developer and ask them to reduce the price. They will no doubt have this issue with other people too. All these credit searches will have an impact on your credit file.