21 Jan

New build mortgages 'will be harder to find'

New build mortgages 'will be harder to find'

Those looking to purchase new-build flats will be affected by the announcement by three lenders that they will no longer be lending above 75 per cent of the value.

Mortgage broker John Charcol reported that Mortgages Plc, West Bromwich and Preferred had all reduced the lending potential on new flats, after concerns they would lose value quickly caused by overpricing.

Saffron has announced it will no longer be lending on new-builds at all, while Norwich & Peterborough and Capital Home Loans both reduced the loan to value rate to 85 per cent.

John Charcol technical manager Katie Tucker said: "Properties in many areas are expected to lose value this year, predominantly as a result of the readjustment of the overpricing that has occurred over the past few years. One of the worst casualties is new build flats."

However, Ms Tucker added that there were still lenders which could provide a higher loan to value rate.

Figures released by ludlowthompson.com show that new build flats fell in value by three per cent over the last year (to September 30th) while second-hand flats increased in value by 11 per cent.ADNFCR-1222-ID-18434835-ADNFCR

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