30% deposit on new homes

[Gypo]

You have to be very wary with new builds when the builders offer you a 5% deposit paid.

Some banks or building societys do not take this 5% builders deposit, i had this problem when i purchased a new build from countryside properties last summer as Britannia would not accept it as a proper 5% of the deposit and instead just used it as £xxxx off the house price.

We still had to find the 10% deposit ourselves.

 

[TheMagicPirate]

You have to be very wary with new builds when the builders offer you a 5% deposit paid.

Some banks or building societys do not take this 5% builders deposit, i had this problem when i purchased a new build from countryside properties last summer as Britannia would not accept it as a proper 5% of the deposit and instead just used it as £xxxx off the house price.

We still had to find the 10% deposit ourselves.

This is very true actually, I should have mentioned. If you go through a scheme like this you usually have to use one of the lenders that the builder states.

Its a nightmare at the moment. Even a 10% deposit on a cheap house (say £100k) is £10,000. Not an easy amount to save up

 

[jamief]

Lenders, at the moment, often want a bigger deposit for a new build house, and moreso for a newbuild flat due to the worry that they will depreciate. I have heard of certain lenders requiring 25% deposit to lend on a newbuild flat.

Quite why you're looking at newbuilds I've no idea! Remember and don't pay anything until the house is completed - the builder will try and pressure you into concluding missives as soon as possible without giving you any guarantee of when the building will be finished.

 

[TheMagicPirate]

Quite why you're looking at newbuilds I've no idea!.

Firstly, because aside from us staying at home for another 2 years to save up a deposit, its our only option.

Secondly, the missus doesn't want an 'old house'

 

[meghatronic]

20% is standard. A lot of new builds are doing deposit matching now. E.g. 10% is borrowed from the builder at 0% interest for 10yrs. So you give the mortgage supplier 20%, but only need 10%.

EDIT - Natwest and other big banks want 25% on new builds. Halifax wanted 20%.

 

[jamief]

Firstly, because aside from us staying at home for another 2 years to save up a deposit, its our only option.

Secondly, the missus doesn't want an 'old house'

An "old house" that will be better built, infinitely better soundproofed, generally have an established garden and be in a quieter area

There are 95% mortgages available just now - maybe you could persuade her to look at some non-new builds?

 

[Gengar]

10% are fine and the deals are not too bad. I got a 90% ltv 2 months ago5.99% fixed for 5 years with no arrangement fees. not too bothered about a slightly higher interest rate over larger deposits. Main thing is I now have an awesome house and no longer need to save up a stupid deposit!

 

[Sash]

I have a 100% mortgage that's just going off it's fixed rate (save £70 a month at current rate) and to remortgage we'd need to drop a deposit of at least 25%. I have about 1%

Lifestyle change imminent!

You'll probably find most bank's SVRs are actually quite good just now.

 

[Fishman]

Indeed, today we moved from out -0.22 tracking (floor at 2%) to BMR at 2.5% (BoE+2)

No way any deal any mortgage product will get anywhere near that at the moment, so much so that Nationwides BMR is not available to new customers, they get a deal and then SMR at 4% ish

 

[meghatronic]

Sorry to bring it in to this thread, but no point starting a new one.

If someone borrowed £12,000 and paid back £15,424.77 (60x£257.08 inc. 5.75% interest), what's the overall APR?

 

[Greebo]

Sorry to bring it in to this thread, but no point starting a new one.

If someone borrowed £12,000 and paid back £15,424.77 (60x£257.08 inc. 5.75% interest), what's the overall APR?

10.9%

As a "rough" rule of thumb double the annual interest charge and deduct 10% of the annual interest charge eg 5.75 x 2 - 0.575 = 10.925%