Our clients are a married couple both in full time employment who wanted to buy a new-build house in Durham using the Government's NewBuy Guarantee scheme.
This scheme aims to help buyers who have a deposit of at least 5% to buy a new-build home. This is a smaller deposit than is normally required. The scheme allows borrowers to secure up to a 95% loan to value mortgage on new-build properties (houses and flats) from participating builders in England. In this instance, the couple's 5% deposit was coming from the part-exchange of their existing home.
When they first started looking for finance, they were directed to the developer's broker but were very unhappy with the service and had, in fact, been left 'in limbo' due to the complexity of the process. In addition to using the NewBuy scheme the couple were looking to consolidate some debt at completion.
Fortunately, we have experience in this type of application and were able to find a suitable lender who agreed to complete the deal as soon as the property was ready.
Here are the details of the deal:
Property value: £159,995
Loan amount: £151,995
Loan to value: 95% LTV
Term: 25 years repayment (capital and interest)
Rate: 4.24% fixed for 2 years
Lender arrangement fee: NIL
Completion date: Autumn 2014
ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
This is just one example of how I've helped a client secure a residential mortgage. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.