Developer Contributions

cassmaddy

I am looking to buy a house on help to buy - and the developer is offering a 5% deposit, does Halifax accept this as this is who i am getting my mortgage through and they aren't open now until after the weekend?

MovingForwards

cassmaddy said:

I am looking to buy a house on help to buy - and the developer is offering a 5% deposit, does Halifax accept this as this is who i am getting my mortgage through and they aren't open now until after the weekend?

As per Halifax lending criteria:

Maximum LTV on new build properties (houses and flats) is 85%, or:

• 75% if the scheme type is a second home loan or buy to let
• 80% if a converted or refurbished property where the vendor is a builder/developer and the property has been vacated to allow the refurbishment to be undertaken.

Builder cash incentives include but are not limited to deposit contributions, cash-backs, contribution to legal fees/stamp duty, mortgage subsidies.

Builder cash incentives will typically be acceptable provided the value of these does not exceed 5% of the lower of purchase price/valuation. Cash incentives in excess of this amount may result in a reduction in the maximum loan available. All builder cash incentives must be declared at the point of sale.

Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive together does not exceed 95% of the value of the equity share being purchased.

All lending decisions are based on valuation or purchase price (whichever is lower).