Llinos is buying a new-build house for £300,000. The developer offers £10,000 of incentives, declared on the UK Finance Disclosure of Incentives form. Her lender bases lending on the price less all incentives and lends up to 90%. What is the most she can borrow?
Developers declare incentives on the UK Finance Disclosure of Incentives form so the lender can assess the true price. Net price: £300,000 − £10,000 = £290,000; 90% × £290,000 = £261,000 (lender's stated policy; Walbrook CeMAP specification v14, MRT2 AC6.3, new build). £270,000 is 90% of the full price, £260,000 deducts the incentives from the loan rather than the price, and £290,000 is the net price.
Applying the LTV to the headline price instead of the price net of incentives.
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