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New Build developments are properties (houses and blocks of flats) built or converted within the past 24 months.
Newly converted properties, completed by a professional and reputable development company, will be treated as New Builds. Examples include offices converted into flats or a professional barn conversion.
Stage payments on New Build properties are not accepted.
We will normally restrict the LTV for this property type to 85%, however we can also lend up to 90% LTV on new build houses where the application meets the following criteria:
- Clean Credit history (0 missed payments in the last 3 years)
- As with all lending above 85% LTV, the maximum LTI is <4.5x income
- Income: At least 50% of the Homeowner's total income must be derived from Employed income (Employed income received from an Owners LTD company must be excluded from the 50%). We will not consider applications where the owners total income is solely from self-employment.
- Applications where the home owners have no employed income are not eligible for 95% LTV borrowing.
Example 1 > Employed owner receiving £50,000pa & a Self-employed owner receiving £40,000 dividends pa and a salary of £10,000pa. All income can be included.
Example 2 > Employed owner receiving £50,000pa & a Self-employed owner receiving £55,000pa. Only £50,000 of the Self-employed income should be keyed on the application.
- Maximum loan is limited to £500k
- Available on new build houses
- Not available on new build flats (Limited to 85%)
New Build Certificates
For any property built or converted within the last 10 years one of the following certifications will be required:
- National House-Building Council Buildmark Scheme (NHBC)
- Zurich Municipal Newbuild Scheme
- Zurich Municipal Rebuild Scheme
- Premier Guarantee for Private and Completed Housing
- Build Assure (FMB)
- Building Life Plans Scheme
- LABC Warranty
- LABC Warranty Scheme
- ICW Warranty Scheme
- One Guarantee Warranty Scheme
- Castle Ten / checkmate
- Global Home Warranties
- Q Assure
- Advantage HCI
- Architect’s Certificate1, The Professional Consultants used must have one or more of the qualifications listed in the CML Handbook 6.7.4 National
New Build Valuations
Valuations can be assessed using the floor-plan provided by the Builder and also the plot map. The market value is derived from that plus comparable property information. A re-inspection may be required where;
- there are significant changes from the floor plan reviewed by the valuer
- the valuation is more than 180 days old and therefore expired or
- it has been specified by the valuer within the original valuation report
The re-inspection fee is £75.