When you are looking to buy a new home, it can be challenging to find right option for you. One of the considerations is your personal taste and style, some prefer period properties for their character whereas many others prefer the fresh modern feel of a new build home. A new build is the perfect blank canvas for you to make your own and as all new builds are built to the latest building standards to be more energy efficient, they can be around 50% cheaper to run than older houses.
If you have decided to look for your new build property, whether you are a first-time buyer or moving home there are a few things you will need to consider. In many cases it won’t be any different to applying for a mortgage for an older property, but there are a few extra things to be aware of before you get started.
The first thing to consider is the upfront costs of buying your new build. As with any property purchase, you will require a deposit. However, lenders and developers are often introducing new and innovative methods of purchasing new homes, often with the backing of the government. For first time buyers this can include Help to Buy schemes, and for home movers some developers also offer part exchange on your home, reduce legal fees or even waiver stamp duty.
Incentives for new builds will differ between developers and offers are changing all the time, including government schemes. Our experience and expertise mean that we can keep you informed about all relevant new-build schemes and panels. If you have more questions please see the guide below, but for the most up to date information, tailored to your circumstances, you should speak with one of our advisers.
The next thing to consider is your mortgage offer. With many developers, from when you put down a deposit, you often only have 28 days to exchange, so you need to be prepared. However, your completion date is often quite far in advance and any mortgage offer is only valid for 6 months, so you will need to keep this in mind for your application. If you are buying off plan, the same rules apply, some lenders may extend the offer if the build is delayed, but there may need to be a reassessment to review your financial position. This is why it is best to get in touch with an adviser as early as possible so they can discuss and prepare with you for the process and application timeline. Our knowledgeable team of new-homes specialists are ready to work with you to find the ideal home finance solution for your individual circumstance.
There are a number of documents we will need to submit to the lender for your mortgage. Here is exactly what your adviser will ask you to look out and why we need them.
A quick step by step guide to get you started on the journey to owning your New Build Home.
If you are a first time buyer considering a New Build for your first home, the First Home Fund could help towards your purchase. Our guide will help you understand the First Home Fund, but if you have any questions, please get in touch!
Help to Buy is available to all home buyers in England looking to buy a New Build home, not just First Time Buyers! Our guide will help you understand what the Help to Buy scheme is and if it could be rights for you, but if you have any questions please get in touch!
"The new build property market has been booming in recent years and new build mortgages have become a niche area. Criteria around loan to value and offer expiry dates are all important and brokers being experts on the shared equity schemes available to some buyers is essential. Equally important when buying a new build is speed of service both from the adviser arranging the mortgage and also the lender as often deadlines need to be met. An important part of my role is knowing which lenders can meet these deadlines and acting quickly to qualify clients for mortgages so they can reserve and get their mortgages approved as quickly as possible. CARA Mortgages have built up trusted relationships over the years with large house builders by providing the service that both the builders and their clients need to make the purchase of a new build house as smooth as possible. If you are interested in buying a new home, give us a call and we can talk you through all your options."