Can I get 90% LTV mortgage on new build property?

Can I get 90% LTV mortgage on new build property?

Author
Discussion

mangos

Original Poster:

2,952 posts

180 months

Tuesday 20th September 2016
quotequote all
Booking a vewing on new build tomorrow but can definitely only stretch to max of 10% desposit.

Will that cause a problem securing a mortgage?

Sarnie

8,025 posts

208 months

Tuesday 20th September 2016
quotequote all
mangos said:
Booking a vewing on new build tomorrow but can definitely only stretch to max of 10% desposit.

Will that cause a problem securing a mortgage?
If it's a house then yes, but it's very few and far between, most lenders want a 15% deposit for a new build house, a lot want more.

Of it's a flat, it's even harder.....

mangos

Original Poster:

2,952 posts

180 months

Tuesday 20th September 2016
quotequote all
Many thanks Sarnie,

it is a house.

Should we be worried about potentially securing 90% ltv and not bother continuing with the viewing?


Ozzie Osmond

21,189 posts

245 months

Tuesday 20th September 2016
quotequote all
I'd be asking the developer whether they have any mortgage finance connections to help sell their houses.

z4RRSchris

11,220 posts

178 months

Tuesday 20th September 2016
quotequote all
the biggest issue you will have is that the new build premium that you are paying will not be factored into the mortgage valuations calcs. So..

a) they will want more than 10% deposit
b) your valuation will fall up short

mangos

Original Poster:

2,952 posts

180 months

Tuesday 20th September 2016
quotequote all
z4RRSchris said:
the biggest issue you will have is that the new build premium that you are paying will not be factored into the mortgage valuations calcs. So..

a) they will want more than 10% deposit
b) your valuation will fall up short
non starter then?

Dan_1981

17,351 posts

198 months

Tuesday 20th September 2016
quotequote all
We had no issue buying a new build with 10% transferred our existing product for part of it and then added extra up to 90%


Sarnie

8,025 posts

208 months

Tuesday 20th September 2016
quotequote all
mangos said:
Many thanks Sarnie,

it is a house.

Should we be worried about potentially securing 90% ltv and not bother continuing with the viewing?
I wouldn't be worried at all, it can be done, just don't think think that every lender will do it, because they won't.

For reference, max LTV for New Build;

Barclays: 85%
Bank of Ireland: 80%
Coventry BS: 85%
Nationwide: 85%
Natwest: 80%
Santander: 85%
TSB: 80%


Defcon5

6,159 posts

190 months

Tuesday 20th September 2016
quotequote all
Isn't there a help to buy scheme where you only need a 5% deposit, specially for new builds?

KingNothing

3,159 posts

152 months

Tuesday 20th September 2016
quotequote all
I'm getting my new build on 5% deposit with 20% deposit from government HTB scheme.

djc206

12,244 posts

124 months

Tuesday 20th September 2016
quotequote all
mangos said:
Many thanks Sarnie,

it is a house.

Should we be worried about potentially securing 90% ltv and not bother continuing with the viewing? Y
Quite a few people I work with have just bought new builds with 10% deposits so it can't be that hard. There's always someone who will lend you the money!

There's HTB as well as already mentioned

mangos

Original Poster:

2,952 posts

180 months

Tuesday 20th September 2016
quotequote all
Do I need to meet a certain criteria for Help to Buy as been suggested?

House is £335k a mile from m25

Defcon5

6,159 posts

190 months

Tuesday 20th September 2016
quotequote all
There is a limit on the price of the house, which is higher in London

mangos

Original Poster:

2,952 posts

180 months

Tuesday 20th September 2016
quotequote all
Thanks all, just took a look one he governments website.
Looks like it would be an option!

If we like the house we are viewing and want to buy it, is help to buy something to get through a broker or do we need to go through government channels directly?

Defcon5

6,159 posts

190 months

Tuesday 20th September 2016
quotequote all
I'm surprised the developer isnt advertising it. I'm sure they will know who to contact in any case

Sarnie

8,025 posts

208 months

Tuesday 20th September 2016
quotequote all
Defcon5 said:
I'm surprised the developer isnt advertising it. I'm sure they will know who to contact in any case
Builder needs to be an approved builder...............and I'd MUCH rather buy a new build with a 10% deposit and own the property in full rather than being lumbered with a 20% equity loan.......

mangos

Original Poster:

2,952 posts

180 months

Wednesday 21st September 2016
quotequote all
Sarnie said:
Builder needs to be an approved builder...............and I'd MUCH rather buy a new build with a 10% deposit and own the property in full rather than being lumbered with a 20% equity loan.......
That is our feelings also Sarnie.

ManicMunky

525 posts

119 months

Wednesday 21st September 2016
quotequote all
Defcon5 said:
Isn't there a help to buy scheme where you only need a 5% deposit, specially for new builds?
Having just spent nine months getting out of this to sell...

DON'T DO IT!

Sarnie

8,025 posts

208 months

Wednesday 21st September 2016
quotequote all
ManicMunky said:
Having just spent nine months getting out of this to sell...

DON'T DO IT!
Yep, quite a few people I've dealt with have said the same..........it's almost near impossible to remortgage when your rate expires when you still have the HTB equity loan...........not a fan of this scheme at all really.

Defcon5

6,159 posts

190 months

Wednesday 21st September 2016
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I bought mine using a similar scheme about 9 years ago, (key worker scheme rings a bell?)

I remortgaged it using the same bank that the original mortgage was with, and the rate was the same as some other good deals, but no fee. They also relied on their computer to estimate the value of the house, which was good as it randomly added about 50k onto the true value biggrin

Maybe it wasn't the best deal available, but it was certainly no hassle.

Are lenders more averse to this new scheme?

I'm sure there is another H2B where you still need a 5% deposit but you get a 95% mortgage and the government just guarantees something to the lender