New builds

Posted on 30 January 2008 by Katie Tucker

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Unfortunately, price changes are evenly distributed by neither location nor property type, New Build flats are the first to feel the brunt of the "property price adjustment". Having been overpriced for quite some time, a government policy of building as much as possible in as little space as possible, means that they are now oversupplied so overpriced.

This week Salt (Derbyshire Bank) joined Accord, West Bromwich and Preferred in no longer lending more than 75% of the value of new build flats. Norwich and Peterborough, Capital Homeloans and Mortgages PLC won't lend mortgages beyond 85% on new build flats, and Saffron won't lend mortgages on them at all.

So First Time Buyers in search of a bargain this year: beware!

Categories: Mortgages, Interest rates, House Prices

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