Can I get 90% LTV mortgage on new build property?
Discussion
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.Will that cause a problem securing a mortgage?
Of it's a flat, it's even harder.....
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.it is a house.
Should we be worried about potentially securing 90% ltv and not bother continuing with the viewing?
For reference, max LTV for New Build;
Barclays: 85%
Bank of Ireland: 80%
Coventry BS: 85%
Nationwide: 85%
Natwest: 80%
Santander: 85%
TSB: 80%
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! it is a house.
Should we be worried about potentially securing 90% ltv and not bother continuing with the viewing? Y
There's HTB as well as already mentioned
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.......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.DON'T DO IT!
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
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
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
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
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