Higher Deposits in Summer 2010 for New Build

From the summer 2010, it could be a very hard year to obtain mortgages with a low deposit on new build properties.  Banks are reportedly offering mortgages with a higher deposit for those new build properies being released from developers; there is a sense within the banks that many new build developments are overvalued by the developers.

How do you counter this to increase your property portfolio.  If you cannot find a property that is established and with price history, you will need to drive an incredibly hard bargain with the developer to ensure your lender is confident you are not paying over the odds.

The discount you will need to avoid negative valuations have to be real discounts on the selling price.  Be aware, 'Gifted deposits' (that is where developers agree to increase your deposit with a lump sum offered by them) may look good but lenders do view them as evidence the property was overpriced and thus these are unlikely to help get an application approved.