Are you considering purchasing a new build property in the UK? Whether you’re a first-time buyer or an experienced homeowner, securing a mortgage for a newly built home comes with its own set of rules and considerations. Here’s a comprehensive guide to help you understand the process.
Understanding New Build Mortgages
A new build mortgage is a loan used to purchase a brand-new property directly from a developer. These properties can be houses, flats, or any other form of new residential construction.
Why Choose a New Build?
- Energy Efficiency: Modern homes are built to higher energy standards, saving you money on bills.
- Customization: Buy off-plan and personalize your interiors.
- Warranty Protection: New homes usually come with a 10-year warranty (NHBC or similar).
Key Considerations for New Build Mortgages
- Higher Deposits: Lenders may require a larger deposit (often 10-15%) for new builds compared to older properties.
- Limited Lender Options: Not all mortgage lenders offer products for new builds.
- Valuation Differences: New builds may be valued differently by lenders, impacting your borrowing limit.
Tips for a Smooth Process
- Get a Mortgage in Principle early to understand your budget.
- Work with a mortgage broker experienced in new builds.
- Be aware of completion timelines – some new builds can be delayed.
- Ensure your mortgage offer’s validity matches the expected completion date.
If you’re ready to take the next step towards your new build home, reach out to our team for expert mortgage advice!
Emily's Mortgage Services LTD 