New Build Mortgages
What You Need To Know
Buying a new home is exciting enough, but buying a new build home is extra exciting. The new paint smell, those modern sleek amenities, stylish designs that put you at the pinnacle of the housing market. Not only that, but there are usually lots of incentives on offer for new build properties, dependent on when you reserve your new home.
House builders & property developers tend to have two peak periods of the year, half year end and year end these vary from builder to builder but generally this is the time that they declare the profits made to their shareholders. It is the period that the shareholders get to find out how successful or unsuccessful the builder/developer has been over the last few months. Independent Mortgage Brokers have worked within the new build arena for many years and have successfully achieved mortgage success for hundreds if not thousands of clients over the years. We have seen some ups and downs over this period. Buying a new build home should be relatively straight forward, but you must be aware of the positives and the negatives should you wish to purchase a new build home. However, if you hit it right, there are some fantastic house purchase deals to be had.
You may be eligible for builder incentives
Usually, incentives offered by a builder are broken down into two parts cash incentives and non-cash incentives. From a mortgage lending point of view, it is important to ensure the incentives are disclosed properly to the lender and valuer at the mortgage application stage, as failure to do so could in fact mean that your mortgage application could be declined and you’re back to square one. At Independent Mortgage Brokers we liaise with your builder or agent to ensure we have all the relevant documentation and we are able to disclose your incentives to the new mortgage lender.
In the new build mortgage market, a house builder or developer would usually want you to exchange contracts within 28 days from reservation. Failure to exchange contracts within the timescales set out by the builder, could ultimately mean that the builder could pull out of the sale and sell the property to someone else for a higher price. If this happens you are back to square one and you will find yourself having to search the market again for another home to live in. This is why it is so important that you speak to one of our new build specialist independent mortgage brokers who will help and guide you through the new build home buying process.
New build specific schemes
New build specific schemes include: the government help to buy scheme, part exchange, and lots of different shared equity schemes or shared ownership schemes, these schemes could help you buy a bigger home than you might have thought possible. Most lenders these days will lend on a new build home but not all will allow you to use a specific new build scheme. Each lender will also have a maximum loan to value (LTV) that they will allow against a new build home. Some insist on a 5% deposit some 10% and some 15% or 20%. So, it is very soon apparent that mistakes can be made when choosing the right lender if you were to do this yourself. That’s why it is a very good idea to use independent mortgage brokers to advise you on the most appropriate mortgage deal for you and your circumstances. Furthermore, we’ll act as a middle man with surveyors, builder’s, solicitors and estate agents on your behalf, and even complete all the paperwork for you, to ensure your new build purchase goes smoothly from start to finish.
YOUR MORGAGE, INSURANCE, LEGAL WORK ALL SORTED IN A SMOOTH EASY PROCESS.
Builders We Work With
Here is a list of builders that many of our customers have bought from and used Independent Mortgage Brokers to arrange their mortgages.