Re-mortgaging an ex-new build house - value expectations

Luke80

Hi all,

First post - I was looking for some advice about expectations for re-mortgaging a (previously) new build house 2 years after moving in. It's a 4 bed detached in NW England.

Does anyone have any experience of how ex-new build houses are valued a couple of years after first occupation?

For reference, we were probably house number 20-30ish of what will eventually be a 250ish house estate on the 'nicer' edge of town (though there is another developer just started further into the 'greenfield'). Our developer's asking prices have gone up > 20% in the 1.5 years since we completed, but I now fear that is no indication of what ours would be valued at 'second hand' and we could be looking at less than what we bought at. Together with our fixed deal (which we moved across from a previous property upon completion) running out in July 2023 at arguably the worst possible time.

Currently paying £920/Mth @ 2% and considering paying the early repayment charge to lock in a deal 6 months ahead to 'only' pay £1250 (5.8%) instead of what could be £1700 (8%) if we wait until after Xmas (according to our broker...) But clearly the exact deal we're offered will depend on a mortgage valuation so looking for feedback on so I can apply for a realistic LTV-derived deal.

Thanks.

inkydolphin

Luke80 said:

Hi all,

First post - I was looking for some advice about expectations for re-mortgaging a (previously) new build house 2 years after moving in. It's a 4 bed detached in NW England.

Does anyone have any experience of how ex-new build houses are valued a couple of years after first occupation?

For reference, we were probably house number 20-30ish of what will eventually be a 250ish house estate on the 'nicer' edge of town (though there is another developer just started further into the 'greenfield'). Our developer's asking prices have gone up > 20% in the 1.5 years since we completed, but I now fear that is no indication of what ours would be valued at 'second hand' and we could be looking at less than what we bought at. Together with our fixed deal (which we moved across from a previous property upon completion) running out in July 2023 at arguably the worst possible time.

Currently paying £920/Mth @ 2% and considering paying the early repayment charge to lock in a deal 6 months ahead to 'only' pay £1250 (5.8%) instead of what could be £1700 (8%) if we wait until after Xmas (according to our broker...) But clearly the exact deal we're offered will depend on a mortgage valuation so looking for feedback on so I can apply for a realistic LTV-derived deal.

Thanks.

I haven't read the whole thread but this might have some info: https://forums.moneysavingexpert.com/discussion/5610670/new-build-depreciation

silvercar

Help to buy has a big influence. If the new build is eligible and likely to attract first time buyers, they won’t be in a position to look at nearly new, therefore deflating the price.