New build mortgages

The appeal of buying a new build property is obvious: you are the first person to step foot into a brand new home and make it your own.  A new build is also supposed to present less stress, given that it has been built to increasingly stringent regulations plus decorated with some input from yourself.  New homes also have the benefit of employing layouts with modern living in mind, in order to maximise space. 

But new builds – however shiny and new – sometimes are criticised for not measuring up to older properties in the quality of workmanship.  Lack of character and not enough use of local materials, plus poor design are often cited as reasons to vote against new builds.  Whether buying a new build or an older property, organising a survey can protect you from nasty, costly surprises further down the line (check out valuation services).

When it comes to new build mortgages, there are a number of options available to you due to the fact that property developers can become desperate to sell their properties and thus wish to appeal to would-be buyers.  For example, with some mortgage schemes the builder pays the deposit for you.  This can be a handy method for first time buyers who are struggling to get a deposit together, but it’s important to note that not all lenders will accept builders’ deposits.  Check that they do not value your property at the price that are you paying - minus the deposit. 

Another thing to also keep an eye out for when buying a furnished new build is whether the lender values the property without the furnishings.  You may also find yourself in a position whereby your mortgage deal expires before you have taken it up due to your home being behind with building deadlines.  So consider new build mortgages whereby you are offered a longer period of time to complete.  These extensions do not apply to all products, so it’s important to check.

You might also consider shared equity mortgage schemes whereby you do not have to find funding for the full price for the property, hence your repayments are lower, and the property developer shares in some of the increase in the new build’s worth.   The developer pays, say, 25% of the property by giving you an interest-free loan which you then repay at a later date or when you sell.  Government shared-ownership schemes are also worth looking in to.

As with any mortgage, with new build mortgages it’s important to shop around for the best deal to suit your needs.  Speak to one of our expert advisers about finding the best new build mortgage for you.

Contact us

See also:
self-build mortgages
first time buyers