New build incentives

alfiemama

Sorry Ao Hell kicked me out

Yes Linz think you are right, its just a way of discounting the price, which a mortgage company would say if they can afford to give 14% as an incentive then maybe its priced too high in the first place.
Doozer yeah I agree with you its just we are worried about the market going even worse, it has been up for sale for 6 weeks and had to reduce drstically as we needed a quick completion, I suppose when you see something that you like its hard not setting your heart on it, we just didnt want it to go as it is perfect for us, but sensibly and hopefully if we wait until march it might still be available and will be able to get a buyer at a better price.

terrierlady

lots of mortgage companies will not accept more than 5% thats why developers do it in many differant ways ie dont put it on the reservation form, use the appointed F.A. there are ways around it, cant the developers F.A. help in anyway?

alfiemama

Hi Terrierlady

Thanks yeah we have spoke to their FA and he said nothing they can do to help as we have to port the mortgage

it all seems hopeless doesnt it

Strapped

It seems the sticking point is the extra 4% (1% stamp + 3% cashback). Could you not borrow the 4% (£7,236) to pay at exchange (so 10% gifted deposit, £7,236 cash and your planned mortgage for the remainder) then 4% cashback from developers after completion? As terrierlady says, there are ways around it.

Strapped

Sorry, just re-read your OP and the sticking point is 9% not 4% so you'd need to lay your hands on £16,281. Whether you can do this or not depends on your circumstances. (My "hobby" is stoozing so I'd find it no problem to lay my hands on this sum from a couple of 0% credit cards for a few weeks, perhaps with a balance transfer fee to pay, but if you're not already into this it's not a good time to start!)

Alternatively, if your property is really that discounted, I'd imagine that you will find other buyers to fit the timescales?

guppy

lynzpower wrote: »

The difficulty is here that "they are paying the deposit" ie, you are going in without any deposit. these days, these "incentives" (and i use the term loosley, i really ABHOR these) are literally a paper moon.

I wonder whether they could give you the deposit in cash bewtween exchange & completion, then you "have" the cash deposit.

Now, Im fairly certain they wont, as its not physical cash, its just a reduction off their listed price.

Paper moon! I love it (even if I don't quite get it!).

Don't want to put too much of a downer on the OP's dream house, but there is a good reason why mortgage companies are so wary of incentives. Its because the developers usually use them to push up the paper value of the house way above what's its really worth...and the mortgage company is worried it won't be able to get all its money back if it has to repossess your house.

As Doozer said, surely the Barratt house is far smaller than the current one, or in a worse location? New builds are always expensive for what they are, what with the developer's profit, subsidising the inevitable social housing etc.

How come you are moving if you don't mind me asking?

alfiemama

Weve been here about 5 years now, we bought it a basically a project as needed loads doing to it, we bought it b4 our 2 children and now just dont have the time, energy or money to devote to it.
The new house is all finsished and in a nicer area for our family. there is nothing wrong with where we live its quite saught after. I suppose we are just ready for a change.
The new house is a 4 bed semi, which is really unusual and perfect size for us, also my hubby works in Manchester and they are going to be building a trainstation on this complex, and a school and they alrerady have a chemist and shop, hairdressers etc.
Also our family are more that way we feel quite isolated this end and to be honest the extra money from a lower mortgage would come in handy, as I have 2 little ones under 3 I am finding it hard to work (even though I want to) to bring in the money as cant afford the childcare and as hubby on good wage (even if for 2 it isnt) they wont give us any extra

You did ask:rotfl:

alfiemama

Just thought Id ask is there a way of not paying the fee if we change the mortgage, it is up in March and if we change there going to charge us 9k, seems high, I know we agreed to it but seems bit unfair for 3 months

terrierlady

explain to the developer you NEED more help, heavy discounts are still out there for serious purchasers and they have money in the kitty so push for it, they wont let you walk away as i said arrange to meet the sales manager and if needed go over her head and speak to the sales and marketing director they will not lose this sale, they need it for the year end figures so play it hard and cool.

A_Nice_Englishman

Have you considered working out the maximum price you can afford and telling the developer you'll buy the house for that? No messing about with 'incentives' , 'gifted deposits' etc etc.

The worst that can happen is they say 'no' and they might just say 'yes'. It's a buyers' market at the moment and the old saying is truer than ever "anything is only worth what someone will pay for it".

If they say 'no' try again next year when you're free of the mortgage tie-in.