Realistbear Posted March 10, 2011 Share Posted March 10, 2011 http://www.bloomberg.com/news/2011-03-10/u-k-mortgage-lending-curbs-hit-new-house-sales-hardest-homebuilders-say.html Mortgage Credit Curbs Hit New-Built House Sales Hardest, Homebuilders Say By Chris "Christopher" Spillane - Mar 10, 2011 8:14 AM GMT U.K. homebuilders say their sales are suffering because of mortgage lending restrictions that make it easier for first-time buyers to purchase secondhand properties than new ones. Annual home sales would increase by about 10 percent at Barratt Developments Plc (BDEV) if lending terms were equal, Chief Executive Officer Mark Clare said in an interview in London. Some of the U.K.’s biggest mortgage lenders ask for down payments of about 20 percent for newly built homes and 10 percent for previously owned real estate. “There is no shortage of people who want to buy,” Clare said. “The problem is that they just can’t get access to the money to do afford it.” New build premium that vanishes the moment you drive it off the lot--so to speak. If they want to move the merchandise drop the price--simple. Quote Link to comment Share on other sites More sharing options...
BelfastVI Posted March 10, 2011 Share Posted March 10, 2011 No the problem is even if the new build is priced the same or cheaper than a 1 yoar old house the purchaser can, in many cases get a 90% loan for the resale and only a 80% for the new. I can understand they using this concept for inner city apartments but I don't understand them applying it to newbuild housing. If the newbuild is priced more than a comparable, recently built house the valuer should down value. However I don't believe this in the issue. HSBC, for example, have this blanket lower loan to value rate on new build no mater the price. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted March 10, 2011 Share Posted March 10, 2011 http://www.bloomberg...ilders-say.html Mortgage Credit Curbs Hit New-Built House Sales Hardest, Homebuilders Say By Chris "Christopher" Spillane - Mar 10, 2011 8:14 AM GMT U.K. homebuilders say their sales are suffering because of mortgage lending restrictions that make it easier for first-time buyers to purchase secondhand properties than new ones. Annual home sales would increase by about 10 percent at Barratt Developments Plc (BDEV) if lending terms were equal, Chief Executive Officer Mark Clare said in an interview in London. Some of the U.K.'s biggest mortgage lenders ask for down payments of about 20 percent for newly built homes and 10 percent for previously owned real estate. "There is no shortage of people who want to buy," Clare said. "The problem is that they just can't get access to the money to do afford it." New build premium that vanishes the moment you drive it off the lot--so to speak. If they want to move the merchandise drop the price--simple. not only that, some 160K newbuilds nearby have a footprint about the size of our rented lounge. no garage. but they do offer gifted deposits.....ie discounts...no wonder proper lenders wont touch them...the valuations are impossible and distorted with the "incentives", whereas, just accross the road, larger, 3 bed semis with garages are available for less. Quote Link to comment Share on other sites More sharing options...
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