buytoilet Posted April 30, 2008 Share Posted April 30, 2008 (edited) Credit Policy Changes From 30 April 2008, RBS Intermediary Partners are introducing changes to the credit policy for new build properties and the income proof requirements for self-employed clients. What are the changes? New build incentives For all new build properties, the total amount of builders' incentives offered against a property will now be deducted from the advertised purchase price to give a "net purchase price". Our valuers will take the total incentives into account when providing the valuation figure. The maximum LTV on new builds will be 85%, which will be calculated against the lower of either the 'Net Purchase Price' or the valuation figure. New build buy-to-let flats maximum LTV The new maximum LTV for all new build buy-to-let flats will now be 65%. Definition of a 'new build' property A 'new build' will be defined as 'any property that has been built, converted or subject to major refurbishment within the last two years'. The 2 years will start from the completion of the property. For all applications on new build properties, please complete the additional information form, which should be returned with the packaging confirmation checklist and DD mandate (which are being renamed, see below). Copies are included below and are also available in the lending criteria and printable forms sections. I cant see how any developer will be able to shift their property if no one can raise the finance Edited April 30, 2008 by buytoilet Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted April 30, 2008 Share Posted April 30, 2008 Our valuers will take the total incentives into account when providing the valuation figure. Gifted deposits uncovered. New builds toast. LR figures will take a spanking. Quote Link to comment Share on other sites More sharing options...
frozen_out Posted April 30, 2008 Share Posted April 30, 2008 Does that give us an idea of how much RBS expect the market to fall by? around 35% Quote Link to comment Share on other sites More sharing options...
Rover Posted April 30, 2008 Share Posted April 30, 2008 Those changes are very austere! Quote Link to comment Share on other sites More sharing options...
Guest Posted April 30, 2008 Share Posted April 30, 2008 (edited) LR figures will take a spanking. Particularly as the cheeky bast ards stuck the recorded price up by an extra £30K. Filthy scum bags. In the words of my mother, "the price of our flat isn't accurate" Edited April 30, 2008 by megaflop Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 30, 2008 Share Posted April 30, 2008 wot, they just noticed the new build price hype?? AT least 100 executives in RBS should be summarily dismissed. They are either incompetant or part of the scheme to defraud shareholders. :angry: Quote Link to comment Share on other sites More sharing options...
_w_ Posted April 30, 2008 Share Posted April 30, 2008 This is huge! How much did builder shares go up by recently? And is that half the Docklands property market gone up in smoke? Banks are catching up with what is happening to property prices. Insurers will likely follow next. We are on our way to following the US for good now. Quote Link to comment Share on other sites More sharing options...
buytoilet Posted April 30, 2008 Author Share Posted April 30, 2008 I get emails like this all the time, nearly all lenders have pulled out of the new build flat market. Most lenders now want 25% deposit for BTL and some will not lend to first time landlords. Quote Link to comment Share on other sites More sharing options...
Guest DissipatedYouthIsValuable Posted April 30, 2008 Share Posted April 30, 2008 (edited) Even houses that have had major refurbishments are covered. Presumably that's a 25% haircut for something like a recent barn conversion, before we get started with sentiment. Edited April 30, 2008 by DissipatedYouthIsValuable Quote Link to comment Share on other sites More sharing options...
Landagan Posted April 30, 2008 Share Posted April 30, 2008 Gifted deposits uncovered. New builds toast. LR figures will take a spanking. Land Reg index only includes the sale price of resold property. So even though the new build sale price is recorded in the data, it does not enter/effect their index. They also "Only record price paid information for properties sold for the full market value." Make what you will of that ... Quote Link to comment Share on other sites More sharing options...
DoctorJ Posted April 30, 2008 Share Posted April 30, 2008 Land Reg index only includes the sale price of resold property.So even though the new build sale price is recorded in the data, it does not enter/effect their index. They also "Only record price paid information for properties sold for the full market value." Make what you will of that ... Yes, right you are. I was getting over-excited. New-builds now even more toasted than they were already. (watered down version) Quote Link to comment Share on other sites More sharing options...
Nicholas Cage Posted April 30, 2008 Share Posted April 30, 2008 Land Reg index only includes the sale price of resold property.So even though the new build sale price is recorded in the data, it does not enter/effect their index. They also "Only record price paid information for properties sold for the full market value." Make what you will of that ... But aren't they bought by people who try to sell as soon as they can even after completion. Those city center flats must have been through several people. Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted April 30, 2008 Share Posted April 30, 2008 What's their policy on new build flats made out of crackerbread? There's plenty of them about! Quote Link to comment Share on other sites More sharing options...
Country solicitor Posted April 30, 2008 Share Posted April 30, 2008 Even houses that have had major refurbishments are covered. Presumably that's a 25% haircut for something like a recent barn conversion, before we get started with sentiment. Excellent. Should make Property Ladder even more fun to watch as things implode. Hope Sarah Beeny is taking note. Lets hope other lenders follow suit as no doubt they will if they don't have similar restrictions in place already. I can't keep track of all the changes but they appear to be chasing each others tails in an attempt to make their lending criteria at least as tough as their competitors. Quote Link to comment Share on other sites More sharing options...
Cityfool Posted April 30, 2008 Share Posted April 30, 2008 Excellent. Should make Property Ladder even more fun to watch as things implode. Hope Sarah Beeny is taking note. Lets hope other lenders follow suit as no doubt they will if they don't have similar restrictions in place already. I can't keep track of all the changes but they appear to be chasing each others tails in an attempt to make their lending criteria at least as tough as their competitors. Good lawd. Its like the banks are TRYING to make this market crater. If the other major lenders follow suit this is going to cause chaos. It effectively means no FTB's can buy up the new builds unless they have a 15% deposit. Since BTL on these things was basically shut down a while back who the fvck is going to buy them! Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted April 30, 2008 Share Posted April 30, 2008 Good lawd. Its like the banks are TRYING to make this market crater. If the other major lenders follow suit this is going to cause chaos.It effectively means no FTB's can buy up the new builds unless they have a 15% deposit. Since BTL on these things was basically shut down a while back who the fvck is going to buy them! I agree, this is massive. If the other lenders follow suit, it's game over for the builders and anyone who bought a newbuild recently. What will happen to those poor saps with a LTV higher than 85% at re-mortgage time... especially when you consider the property is losing money every day and therefore the LTV ratio is getting higher as the value drops... Quote Link to comment Share on other sites More sharing options...
Matt Bear Posted April 30, 2008 Share Posted April 30, 2008 There must be loads of "reserved" new builds now that don't stand any chance of completing. Can anyone shed any light on what happens in such situations? Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted April 30, 2008 Share Posted April 30, 2008 It effectively means no FTB's can buy up the new builds unless they have a 15% deposit. Since BTL on these things was basically shut down a while back who the fvck is going to buy them! Rubble manufacturers Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 30, 2008 Share Posted April 30, 2008 Poor old darling. He thought hed cracked it by slapping 50bn (at least) in the pockets of the banksters, and about a week later they shaft him up the black hole of debt!! Quote Link to comment Share on other sites More sharing options...
shindigger Posted April 30, 2008 Share Posted April 30, 2008 Good lawd. Its like the banks are TRYING to make this market crater. If the other major lenders follow suit this is going to cause chaos.It effectively means no FTB's can buy up the new builds unless they have a 15% deposit. Since BTL on these things was basically shut down a while back who the fvck is going to buy them! Councils. Chav heaven. Nailed. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted April 30, 2008 Share Posted April 30, 2008 Councils.Chav heaven. Nailed. Councils dont buy no 'ouses no more guv Quote Link to comment Share on other sites More sharing options...
WSG Posted April 30, 2008 Share Posted April 30, 2008 Gifted deposits uncovered. New builds toast. LR figures will take a spanking. Ray Boulger....is that you???? Quote Link to comment Share on other sites More sharing options...
shindigger Posted April 30, 2008 Share Posted April 30, 2008 Councils dont buy no 'ouses no more guv Buy, lease, commandeer, whatever. Schemes are already being touted on Gumtree http://www.gumtree.com/london/84/23362184.html Quote Link to comment Share on other sites More sharing options...
Landagan Posted April 30, 2008 Share Posted April 30, 2008 Yes, right you are. I was getting over-excited.New-builds now even more toasted than they were already. (watered down version) Yes! Definitely toast, but they just don't want to have it ruin their carefully manipulated index. However, this new build-price-collapse has hit mainstream awareness big time now, no hiding it any more. It's big, it's ugly and it's fu*king scary. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted April 30, 2008 Share Posted April 30, 2008 Rubble manufacturers I kid you not!!!! From the top deck of the 486 bus this morning going through that nasty pile of buildings offering themselves as 'contemporary urban luxury apartment living' by the O2, I'm sure they were ACTUALLY demolishing what was the start of another new build. Quote Link to comment Share on other sites More sharing options...
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