Mortgage on a new build
Mortgage on a new build
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Discussion

Alanm73

Original Poster:

24 posts

172 months

Friday 8th March 2013
quotequote all
Does anyone know what the best lenders are to look at for a 90% mortgage on a new build property in Scotland?

Sarnie

8,373 posts

239 months

Friday 8th March 2013
quotequote all
It's not quite as simple as just 'who is the best lender'. As you may have found out some lenders will limit the LTV to 85% on newbuild houses, even less on flats. Is it a flat or a house? Drop me a PM if you need something more specific smile

Edited by Sarnie on Friday 8th March 21:03

T5SOR

2,032 posts

255 months

Friday 8th March 2013
quotequote all
Was a nightmare when I was going to buy a new build a few weeks ago. As the house was a new build I could only find 85% LTV mortgages.

Banks don't value new builds as high as the developers. Usually because they are well over price!

There is a government scheme called "New Buy" and that lets you put 5% down, but the housing developer has to put money in and it gives you less leverage to haggle them down on the asking price. I decided to get a bigger (used) house and save £40K.

Stevemr

948 posts

186 months

Saturday 9th March 2013
quotequote all
"Was a nightmare when I was going to buy a new build a few weeks ago. As the house was a new build I could only find 85% LTV mortgages."

A good Broker who knows the new build market would have been able to get you a 90% LTV mortgage on a new property without using the government scheme, I have done two this week at that LTV.

s2t

424 posts

191 months

Tuesday 12th March 2013
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Buildstore seem to be leading brokers in this area
What you may find is that specialist lenders for new builds try and lock you into higher than standard rates even after the build is completed.
Ideally in my opinion look for short term finance during the build with the exit being a mortgage. However with 90% LTV with due respect doesn't give a lender confidence that contingencies can be covered

s2t

424 posts

191 months

Tuesday 12th March 2013
quotequote all
Oh from what I gather many English based lenders do not lend on Scottish new builds
Self Build magazine list about 20 lenders for self build none lend at 90%LTV
As mentioned above find a specialist broker

Sarnie

8,373 posts

239 months

Tuesday 12th March 2013
quotequote all
s2t said:
Buildstore seem to be leading brokers in this area
What you may find is that specialist lenders for new builds try and lock you into higher than standard rates even after the build is completed.
Ideally in my opinion look for short term finance during the build with the exit being a mortgage. However with 90% LTV with due respect doesn't give a lender confidence that contingencies can be covered
I think you're confusing self build with new build......