Mortgage on a discounted new build - LTV

Hi All,

We are currently looking to move home to a new build. The builder (Bellway) have discounted it by 20k and I was wondering if anyone had experience of applying for a mortgage using the higher home value rather than the discounted price.

My reason for asking as it would move us from 80% mortgage LTV to a 75% and unlock a better interest rate.

Many thanks

Comments

  • K_S
    K_S Posts: 6,671
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    @jon0108 The lender will value it at the lower of the purchase price and their valuation. If your purchase price is the discounted amount, then that is what they will take into account.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • kingstreet
    kingstreet Posts: 38,615
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    If it's a builder deposit - yes.

    If it's a discount - no.

    It depends on the wording on the reservation and UKF Disclosure form.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • foxy-stoat
    foxy-stoat Posts: 6,879
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    You have to let the lender know about any incentives, our lender oddly reduced the amount they were willing to lender by £15,000 when they found out about the £15,000 reduction in purchase price incentive.

    So we had to fund Bellways incentive, new build sales marketing BS, happens pretty much everywhere, dfs, pc world, anywhere that sells kitchens....

    See this £500 laptop, we can advertise it for £1000 for 4 weeks of the year so we can then advertise it for £500 and say its a genuine sale of 50% and get the suckers to buy it without breaking any misleading rules, we have to write the inflated price underneath with dates it was advertised at that price as well.
  • lonibra
    lonibra Posts: 365
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    If it's just a discount off the list price, then no.
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