Banks Refusing Lending on New Builds

Many banks stopped lending for buy-to-let new builds a while back. This was due to the many buy-to-let scams. You have probably seen the adverts with catchy headlines such as "£20,000" instant equity etc. Many of the companies offering these deals have now gon bus and a numer of surveyors are facing prosecution for over valung properties... I guess it depends on the amount of equity the buyer has and the real value of the property.

The problem is with off-plan homes and the 9-12 month completion delay. You can get an estimated valuation now, but the actual value is likely to be 10% lower in 12 month's time. Unless you have more than 10% deposit, the bank will be worried about not getting its money back. For stock homes i.e. homes that are complete and empty this won't be so much of a problem, or at least no different to any other type of property, as the valuation will be accurate. I believe that banks are looking for large deposits and there are only a few 95% mortgages available - many are saying these won't be around for much longer. 100% and 100% plus are a thing of the past...