RBS lowering new build mortgages to 85% LTV

consnmattsmom

Has anyone heard this? Our FA adv yesterday that RBS were bringing this in from midnight last night!!

We are borrowing 95% on a new build :eek: , not scared though as we dont intend to move from there ever.

We have gone to them for our mortgage but our FA thinks we will be ok as our application was agreed in principle prior to this coming in.

Dan:_4

consnmattsmom wrote: »

Has anyone heard this? Our FA adv yesterday that RBS were bringing this in from midnight last night!!

We are borrowing 95% on a new build :eek: , not scared though as we dont intend to move from there ever.

We have gone to them for our mortgage but our FA thinks we will be ok as our application was agreed in principle prior to this coming in.

That was lucky, I hope it all works out for you.

I would agree that you have nothing to worry about if you intend to stay there forever.

moneysavinmonkey

consnmattsmom wrote: »

Has anyone heard this? Our FA adv yesterday that RBS were bringing this in from midnight last night!!

We are borrowing 95% on a new build :eek: , not scared though as we dont intend to move from there ever.

We have gone to them for our mortgage but our FA thinks we will be ok as our application was agreed in principle prior to this coming in.

It's not just a problem if you move though,:eek:
you may have trouble re-arranging your mortgage when your fixed rate expires (assuming that is what you signed up to?). Loads of people on these boards and on bbc hys complaining about getting shoved on lenders high rate SVR as they can't get a new mortgage deal.... with a 95% mortgage on a new build (which notoriously don't hold their value well in the best of markets) you're pretty much guaranteeing yourself some agro.

Incidentally people coming off so called 'teaser-rates' in the US and then finding they couldn't find an affordable mortgage deal is what kicked off the housing recession, sub-prime crisis + credit crunch over in the US in the first place. Make sure you can afford your mortgage repayments if your interest rate jumped up massively - otherwise this whole mess is going to start all over again!

Dr_Moe_2

This is expected I must say. New builds are definitely riskier ( as they can depreciate qucikly) and banks are not taking any risks at the moment. It seems the credit crunch will soon bite Persimmon and other new build giants. After ten years of gigantic profits I guess the honeymoon is now coming to an end.

I don't think the situation is that bad though- new builds down the road are selling for less but they are still selling.