Any mortgage brokers out there???
Discussion
Credit history excellent, no dependants and affordability no problem. Deposit is all hers (savings). The purchase is with Barratt homes (reputable builders in the York area). Wouldn't mind but the purchase price she's negotiated is only £70k and she's managed to save up £9k (I said to keep £2k for sols/etc) and use £7k deposit. But now I can't find her a mortgage!!
Crazy, but she could have put only 5% down and gone on their shared equity scheme where Barratts lend 15% as an interest free loan over 10 years, then there are a few mortgages to choose from as they class it as an 80% mortgage, but not taking this shared equity route has enabled her to secure a cracking deal on the purchase price and a load of freebies thrown in (i.e. washing machine/fridge freezer/etc).
Doesn't seem right to me!
Crazy, but she could have put only 5% down and gone on their shared equity scheme where Barratts lend 15% as an interest free loan over 10 years, then there are a few mortgages to choose from as they class it as an 80% mortgage, but not taking this shared equity route has enabled her to secure a cracking deal on the purchase price and a load of freebies thrown in (i.e. washing machine/fridge freezer/etc).
Doesn't seem right to me!
Mortgages are becoming like rocking horse pooh.
Client of mine seeking to buy a commercial mortgage with 50% YES 50% deposit pulled out because only two lenders would consider the loan and both wanted 7& interest and £1000 plus UP FRONT FEES.
With the Bank rate at 0.5% this is 14 times the Bank rate.
That is usury not commercial lending.
Sorry I cannot be more positive in reality the deals that are obtainable are at daft prices because it is so difficult to get mortgages currently.
I only recommend one Chartered Financial Services Broker because I have encountered so many time wasters. This bloke used to work for me many years ago and was always going to be excellent in Business.
If you PM me I will send you the details.
If he cannot do it in my experience it cannot be done.
Client of mine seeking to buy a commercial mortgage with 50% YES 50% deposit pulled out because only two lenders would consider the loan and both wanted 7& interest and £1000 plus UP FRONT FEES.
With the Bank rate at 0.5% this is 14 times the Bank rate.
That is usury not commercial lending.
Sorry I cannot be more positive in reality the deals that are obtainable are at daft prices because it is so difficult to get mortgages currently.
I only recommend one Chartered Financial Services Broker because I have encountered so many time wasters. This bloke used to work for me many years ago and was always going to be excellent in Business.
If you PM me I will send you the details.
If he cannot do it in my experience it cannot be done.
Steffan said:
Mortgages are becoming like rocking horse pooh.
Rubbish, absolute total rubbish. The number of mortgages has risen over the past few months and the cost of mortgages has fallen. Its a market you don't seem qualified to comment on, so please stop.Steffan said:
Client of mine seeking to buy a commercial mortgage with 50% YES 50% deposit pulled out because only two lenders would consider the loan and both wanted 7& interest and £1000 plus UP FRONT FEES.
Errrrm they obviously didn't like the business plan he offered them. Commercial for your guide is a totally different ball game to resi/BTL.Steffan said:
With the Bank rate at 0.5% this is 14 times the Bank rate.
So presumably the lenders looked at the risk and felt it wasn't attractive, they then priced the loan accordingly. Steffan said:
Sorry I cannot be more positive in reality the deals that are obtainable are at daft prices because it is so difficult to get mortgages currently.
More rubbish, please go away. There are 90% FTB deals available at the moment at better rates than were being offered to prime borrowers with 30%+ deposits before the credit crunch. Steffan said:
If he cannot do it in my experience it cannot be done.
It can't be done via a broker at the moment. And having spent some time on it this morning, I'm pretty sure it can't be done direct either.
Sorry Audi, you may have backed your friend into a corner with this one.
Audi, unfortunately Scotal is right on this one, I work in the same field and cannot think of any lender that will look at this unless the builder has a particular agreement with a lender direct.
The mortgage new build market has in theory got slightly better over the last few months but the lenders are still very cautious and a bigger deposit will be required.
The mortgage new build market has in theory got slightly better over the last few months but the lenders are still very cautious and a bigger deposit will be required.
Cheers for all your efforts in looking guys. I understand their theory about new builds, but as ever there are exceptions and this seems to be one.
As a first time buyer, with 10% deposit, good credit rating and good affordability, you would imagine a mortgage would be easy to get (even in today's world). She's gone for a new build as there's a 10 years guarantee and little to no maintenance. Seems mad IMO.
As said, thanks for putting the time in. I will tell her the outcome and see where she goes from here. Might have to forgo the excellent deal and go for the headstart scheme with the shared equity option!
As a first time buyer, with 10% deposit, good credit rating and good affordability, you would imagine a mortgage would be easy to get (even in today's world). She's gone for a new build as there's a 10 years guarantee and little to no maintenance. Seems mad IMO.
As said, thanks for putting the time in. I will tell her the outcome and see where she goes from here. Might have to forgo the excellent deal and go for the headstart scheme with the shared equity option!
audi321 said:
As a first time buyer, with 10% deposit, good credit rating and good affordability, you would imagine a mortgage would be easy to get (even in today's world). She's gone for a new build as there's a 10 years guarantee and little to no maintenance. Seems mad IMO.
Its the new build that's crippling her. All other things being equal she could get the lending(ok at 90% LTV the rates won't be market leading, but they won't be terrifying.)The lenders have been badly burned on new build to the extent that, with flats particularly, they don't want to know.
Obviously you hope the 10 year guarantee is unnecessary, but I am slightly cynical about them anyway. The NHBC has teeth, but its reluctant to use them.
Has she looked into how service charges are structured on her desired property, I would thoroughly recommend it.
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