95% LTV on new build

Cazza

The policy was changed on 11th April, if your full application was in before then, you should be ok.

consnmattsmom

Cazza wrote: »

The policy was changed on 11th April, if your full application was in before then, you should be ok.

Lets hope so then. It was received by them on the 10th so just scraped in by the skin of our teeth then.

I cant get excited until I know for def that we can have the mortgage.

consnmattsmom

It seems now that there could be another spanner in the works.

We have received a letter from the solicitors saying that they need our mortgage lender to also agree to the deposit, stamp duty and legal fees coming from the builder as a gift.

Is this normal? Do lenders normally agree this?

I have got such a feeling that we are not going to get this mortgage offer!!

mystic_trev

So in effect you're not paying any deposit. I very much doubt your Lenders will be happy with that!

_Andy_

I think you're going to struggle to say the least!

consnmattsmom

Thats what I am thinking!! If they want the sale and our mortgage lenders wont give us the mortgage they are going to have to increase what they are giving us for ours by £8500 and then we will be paying the deposit.

Not sure if they would go for that but would be an option I suppose. Depends how bad Bellway need the sale.

Dan_Collins_2

You may well get it. Housing companies are not shifting houses in some areas.

You will struggle with mortgage otherwise.

Tiddler_2

RBS have generally accepted builder funded deposits, very recently up to 5%. As has been said already, the maximum LTV they now do on new build properties is 85% but if your application was received before this deadline, then they should honour the fact that at the time it was submitted and received they did 95% LTV.

The main difficulty may be the valuation of the property. Generally speaking customers pay a premium price for buying a brand new property. Some lenders have instructed their valuers to ignore this premium, and to value them at the price they would fetch if on the second hand market.

Providing that the property values up at the price you are paying for it (e.g £200k) then you would be ok for a 95% mortgage. I assume that the broker has gone through the costs of RBS's Higher Lending Charge etc.

I was speaking with my colleague only yesterday (we work with 5 local builders, and have done as a business for around 7 years, so are know quite a bit about the new build market place) and we were agreeing that it would be a lot easier if the builders didn't give any incentives for buying the property and just sold them at the right price, take it or leave it - then valuations and mortgages would be alot easier to arrange!!

minimike2

Ive seen and heard of a lot of valuers downvaluing all new builds by 5% anyway as they know that a lot of the time the price will be inflated by at least this amount due to teh 5% deposit paid incentives.

Sucks, but thats the current climate!

Good luck for yours going through.

consnmattsmom

Tiddler wrote: »

RBS have generally accepted builder funded deposits, very recently up to 5%. As has been said already, the maximum LTV they now do on new build properties is 85% but if your application was received before this deadline, then they should honour the fact that at the time it was submitted and received they did 95% LTV.

The main difficulty may be the valuation of the property. Generally speaking customers pay a premium price for buying a brand new property. Some lenders have instructed their valuers to ignore this premium, and to value them at the price they would fetch if on the second hand market.

Providing that the property values up at the price you are paying for it (e.g £200k) then you would be ok for a 95% mortgage. I assume that the broker has gone through the costs of RBS's Higher Lending Charge etc.

I was speaking with my colleague only yesterday (we work with 5 local builders, and have done as a business for around 7 years, so are know quite a bit about the new build market place) and we were agreeing that it would be a lot easier if the builders didn't give any incentives for buying the property and just sold them at the right price, take it or leave it - then valuations and mortgages would be alot easier to arrange!!

The valuation is back and has been valued at the £169995 that we are paying for it so that was good news.

It would be easier without the incentives but suppose they offer them to make you feel like you are getting a better deal.

The mortgage advisor we have gone with is from a company that specialises in new build properties so hopefully he should have known if there was going to be a problem.