Lender lowered mortgage amount due to builder incentives? Hlifax

Nkay19

Hi, I applied for a mortgage with Halifax. We are putting in a 5% deposit, and the builder is giving us 3% of the house price for stamp duty. Does Halifax reduce that 3% from the total mortgage LTV? Which means do we need to pay an 8% deposit so the total value of the LTV doesn't exceed 95%?

eddddy

It's easier to explain with example numbers... let's say the price of the house is £300k

• £300k house

• But the Builder is giving you a 3% incentive = £9k

• so Halifax would say that the real price of the house is £300k - £9k = £291k

• So Halifax will lend you 95% of £291k = £276.45K

(Whether you call that a 5% deposit or a 7.85% deposit depends on how you want to calculate it.)

Nkay19

eddddy said:

It's easier to explain with example numbers... let's say the price of the house is £300k

• £300k house

• But the Builder is giving you a 3% incentive = £9k

• so Halifax would say that the real price of the house is £300k - £9k = £291k

• So Halifax will lend you 95% of £291k = £276.45K

(Whether you call that a 5% deposit or a 7.85% deposit depends on how you want to calculate it.)

Thanks for explaining me. but i believe only Halifax calculate like this?

theartfullodger

In my experience most lenders calculate similarly..

You may be amazed to here different lenders have different rules and processes ssso it's hard to give just one answer covering all lenders...  Who'd ave guessed...