Data from COMPLETIONmonitor reveals that Halifax lead new home mortgages.
On the whole, lenders are still shying away from newbuild lending although, Santander, Nationwide BS, NatWest and Barclays (Woolwich) are still active in this area.
Brokers have been expressing concern for some time now that lenders still have a dual criteria for lending on a newly built house and lending on what we would class as second hand and the biggest variance is at the LTV calculations.
The problem is further reflected by latest version of Help to Buy. Notwithstanding that this product’s modus operandi is to allow buyers with as little as 5 per cent deposit to purchase a property, mortgage lenders supporting the scheme still restrict a new build property to their maximum published LTV criteria which is typically 80%.
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