Sunday, February 1, 2009
Nobody wants to touch new-builds
If you thought it was difficult getting a standard mortgage just now, then try getting one for a newly built home. Some mortgage providers will not lend on a recently constructed place, full stop. Those that do, ask for up to a 50% deposit. Buyers may therefore need a mammoth £100,000 down-payment on a £200,000 home. The Council of Mortgage Lenders blames concerns that new homes may be overpriced and that they may lose value quickly. This problem is exacerbated at present by falling house prices. The surplus of new flats nationwide mean they are even more likely to lose value, it adds.