New Build to New Build

iViewTV

We moved into our new build house in June 2022. We absolutely love the house but lacking a little space, long story short there is another house for sale on our development which has a lot of incentives such as garage and south facing garden.

Not only that but they're offering a free flooring package, deposit contribution etc and would be a ideal situation for us as we had to pay for everything ourselves. 

We luckily fixed in for a 5 year fixed term with Vida Homeloans (Past credit history but coming up to 5 years with no defaults).

How likely are we to be accepted for this mortgage as we got the governments HTB scheme with this as i understand this would need paying back also.

My Salary is £49000
Partner Salary is £11000

Current House Price - £210K
Potential House Price - £277K
Deposit Contribution from Builders - 8.6K

MultiFuelBurner

Have you any equity or money to put towards the potential house?

iViewTV

I’m hoping we’ve got around 10K equity in the house. 

Could probably put 5K towards

MultiFuelBurner

4-4.5x salaries is available on the high street 5x and up via brokers.

It's about affordability and what other outgoings you have and financial commitments.

GDB2222

Would the developers accept your current house in part exchange, or would you have to market it with an estate agent?

dimbo61

Buying a property is expensive
Buying, selling and buying another property all within 12 months is very expensive.
Can you port the current mortgage to the new house ?
I am guessing you have a great  rate and the Lender will say Sorry computer say no even if you have all the cash to pay the extra for this new more expensive house.
So your not borrowing any extra.
Maybe enjoy your current home and consider a Small extension of you need more room

housebuyer143

I imagine you need to stay with Vida due to the adverse credit, they accept 5% builders deposit so you will need at least 10% yourself as they only do 85% ltv max. 

https://www.vidahomeloans.co.uk/intermediaries/calculators/residential-affordability

Have a play on this calculator to see the max they will lend you. 

£15k deposit on a £277k house isn't going to be enough unfortunately, you would need £27.7k plus the builder to put in £14k. As they are only putting in £8.6k you will need over £33k to make this work as a deposit.

If you can get away from Vida (will be large ERCs) you might be able to get 90% ltv, but that still means you need to find 10% deposit plus monies for the stamp duty, solicitor fees, ERCs etc. Moving house isn't cheap and less so the second time around.

p00hsticks

iViewTV said:

I’m hoping we’ve got around 10K equity in the house. 

If you only bought nine months ago I think that might be wishful thinking, as I suspect you'd have to lower your asking price considerably from what you bought it for.

After all why would someone buy a nine-month old second-hand house when they could get a brand new house on the same development done to their own specification,  complete with all the special offers that are tempting you yourself and the various new-build guarantees, unless it was considerably cheaper  ? 

MultiFuelBurner

p00hsticks said:

iViewTV said:

I’m hoping we’ve got around 10K equity in the house. 

If you only bought nine months ago I think that might be wishful thinking, as I suspect you'd have to lower your asking price considerably from what you bought it for.

After all why would someone buy a nine-month old second-hand house when they could get a brand new house on the same development done to their own specification,  complete with all the special offers that are tempting you yourself and the various new-build guarantees, unless it was considerably cheaper  ? 

It could also be those houses are no longer available on the site. They could demand a premium then.

Could also be, as happens regularly, every 3 months the prices go up on developments.

iViewTV

p00hsticks said:

iViewTV said:

I’m hoping we’ve got around 10K equity in the house. 

If you only bought nine months ago I think that might be wishful thinking, as I suspect you'd have to lower your asking price considerably from what you bought it for.

After all why would someone buy a nine-month old second-hand house when they could get a brand new house on the same development done to their own specification,  complete with all the special offers that are tempting you yourself and the various new-build guarantees, unless it was considerably cheaper  ? 

Thats true, however we reserved and got the price before the last housing price rise. The developer would part exchange the house also.

GDB2222

iViewTV said:

p00hsticks said:

iViewTV said:

I’m hoping we’ve got around 10K equity in the house. 

If you only bought nine months ago I think that might be wishful thinking, as I suspect you'd have to lower your asking price considerably from what you bought it for.

After all why would someone buy a nine-month old second-hand house when they could get a brand new house on the same development done to their own specification,  complete with all the special offers that are tempting you yourself and the various new-build guarantees, unless it was considerably cheaper  ? 

Thats true, however we reserved and got the price before the last housing price rise. The developer would part exchange the house also.

So, the £210k is the part exchange price?