95% LTV on new build

consnmattsmom

We are currently awaiting our mortgage offer on new build property that we have applied for 95% mortgage.

This matched the lending criteria of RBS when we had our agreement in principle however they have since dropped new build properties to max 85% LTV.

Our mortgage adviser is certain that our application will still be approved as the AIP was done before the criteria has changed but RBS wont confirm that until the application has been underwritten.

I am scared that we are going to be turned down for the mortgage.

Does anyone have any experience or opinions like this?

foxwales

It will entirely depend on the lender. If you have an agreement in principle then they should honour it at the rate and amount stated.

Im pretty certain though that agreements in principle can be changed at the lenders discretion. Have you got a terms and conditions with your agreement in principle? check that.

consnmattsmom

I havent even seen the AIP to check its just all been done verbally to us by our mortgage advisor. I would expect he has something in writing.

I am really nervous in case we lose the property. I have now been advised that they are going to underwrite our application on Friday so should hear by close of business Friday or Monday.

foxwales

I think you will be okay.

Your agreement in principle will be valid for a certain length of time and should be at the rate and amount that was orginally set.

They have probably just closed the 95% LTV to new lenders.

I'll keep my fingers crossed for you for friday.

Dan_Collins_2

If I remember correctly he would not been able to apply for the product on a new build as it is done via an online system. They brought out a deadline to get apps in.

Ask the broker to check!

consnmattsmom

Think he did the AIP online but he couldnt submit the app online as we are porting part of our mortgage so it had to be done manually. The brokers say we will be ok. Les hope he is right.

_Andy_

AFAIK a DIP wouldn't hold the rate, only a full app would. As per Dan, best to get the broker to check.

sarkin

Why do you think all lenders are pulling out of lending on new builds, unless the purchaser has at least 15% deposit and in some cases 30-40%.

I had an email this morning from Cheshire on all the psot codes they will not lend on without 30% deposit.

CROWN_3

The DIP/AIP only gives you a indication of lending agreements. It does not hold the rate or criteria.

Buying a new build heh - in this climate. Good luck

consnmattsmom

The full application was in before the deadline of the LTV being reduced by them. However it has just sat on someones desk due to there delays so I am hoping that we wont be penalised.

Fingers crossed. As for buying a new build in this climate I dont see a problem as we dont expect to move for at least 10-15 years.

MortgageMamma

Hi

If the full applicatoin was done online and the broker can prove its been done before the deadline rate you will be ok. however if it was just an agreement in principle done and not a full application you will not secure the rate or the 95% loan to value. Lenders are currently reducing the high loan to value mortgages on their books and its very difficult to secure high loan to values now.