Mortgages for New Build Properties
1. Get started
Our new build expert advisers will help you find the best mortgage for your brand new property and secure you a Decision in Principal.
2. Your offer
Once your mortgage application is complete and all the necessary paperwork is in order, our team will help you find a solicitor and get your offer ready.
As easy as that, everything will be complete and you’ll be ready to move in and we’ll continue to provide advice and support while you enjoy the benefits of owning a new property.
Mortgage differences for New Build Properties
New Build Houses
Purchasing a new build house is a very exciting process, however it can feel quite daunting if you don’t get the mortgage advice you need to secure your dream home. More often than not, you will be purchasing a property that may not be ready for a while, meaning that you’ll need a mortgage offer that has the correct validity to ensure that it doesn’t expire before you complete.
Our expert mortgage brokers will be able to recommend the lenders that are suitable for your new build mortgage making sure you have a stress-free application, and our relationships with the lenders will mean that you will avoid any hiccups along the way.Close
New Build Flats
Securing a mortgage for a new build flat is a little trickier, and that’s where we come in. For example, some lenders are more cautious when accepting a mortgage application for apartment buildings with unusual construction, so it’s important to know where to shop around for your mortgage loan to avoid disappointment.
Another factor that could affect your new build mortgage application would be if your new build flat is positioned above a commercial property and it’s also important to note that you may require a larger deposit, as some lenders offer up to 10% less LTV on a new build flat as opposed to a house.Close
The Pros and Cons of New Build
If you’re thinking of purchasing a new build property or have already found your dream new build home, it’s important not to rush ahead without weighing up the pros and cons. Our specialist brokers here at Southern Mortgages can help you understand more about the disadvantages of buying a new build home such as the delays that could incur, property defects that were not spotted during the survey and the general risk involved when purchasing a property you may not have seen yet. It’s also important to take into consideration the area in which you are buying the property, as you may be surrounded by a building site until the rest of the complex is complete. Despite all of this, there are also huge benefits in buying a new build home including NHBC warranty, the ability to personalise your home with custom fixtures and fittings, and the “ease of purchase” in regards to having no upward chain to worry about. There are also major government incentives like the Help to Buy scheme that can really make a difference on your ability to get a mortgage.
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Questions about New Build Mortgages
The mortgage process is never straight forward, so don’t worry if you still have some questions to ask. Take a look at our handy FAQ’s, and if you can’t find what you’re looking for, give us a call today.
Buying a home off-plan can be risky, as you are essentially contractually agreeing to buy a property that you haven’t necessarily seen yet. If you change your mind, you could be at risk of losing your deposit or worst case scenario facing legal issues with the development company. Also note that lenders will carry out a survey at the beginning and end of the build, so if anything changes between these two appointments, it could have an impact on the value of the property, how much you are allowed to borrow etc. Another thing to remember – if the property build faces major delays and your mortgage offer expires, you can re-apply for a mortgage but there will be no guarantee that your application will be successful second time round. Overall, it’s best to seek advice from an expert mortgage advisor before entering into any off-plan agreements.
Often building developers have incentives like “5% cashback” or “no stamp duty” etc to cement property sales. These can be a massive advantage when buying a property, helping to reduce upfront and/or ongoing costs, however lenders may take these into account when deciding how much you are allowed to borrow. Talk to a mortgage adviser if you are unsure whether your mortgage application will be affected by any incentives.
Adverse Credit for New Build Mortgages
Worried your credit rating is affecting your chances of getting a mortgage? Here at Southern Mortgages, we have advisers that specialise in finding mortgages for people with adverse credit and with our free initial advice, you’ll be on your way to owning a home in no time.
Get your New Build Mortgage
Speak to one of our advisers today and see how we can help you get a mortgage stress free.
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