Correct at 31/03/2020
If you’re looking for a mortgage to buy a new build home, L&C is here to help. Our online mortgage finder tool can help you track down the deals you could be eligible for, and once we’ve found the best deal for you, we can help you submit your application online.
We understand that getting a new build mortgage is a big commitment, so our experts are on hand to talk you through the options available to you and support you during the application process. They have plenty of experience dealing with new build mortgages and our advice won’t cost you a penny, so get in touch today and find out what L&C can do for you.
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New build homes appeal for many reasons.
Not only are you often able to choose the fixtures and fittings you want, but they also usually come with a warranty to protect you against any defects in the building work. New build homes are typically more energy-efficient than older properties too.
There is also a government scheme called Help to Buy which can make buying a new build property more affordable. Under this scheme, as long as the property you’re buying costs £600,000 or less, you only need to put down a deposit of 5% and the government will lend you a further 20% of the purchase price. This means you’ll only have to take out a mortgage for the remaining 75% once your 5% deposit is factored in. If you‘re buying in London, you can apply for a government loan worth up to 40% of the property price. You’ll need to act quickly though, as the current scheme comes to an end in March 2021, and will be replaced by a new scheme open to first time buyers only.
However, new build properties do have some drawbacks, not least that they tend to be more expensive than older similar properties, known as the ‘new build premium’.
Mortgage lenders can also be stricter on the amount they are willing to lend. If you’re considering buying a new build L&C can advise exactly which deals you’ll be eligible for and support you throughout the application process.
You’ll need to apply for a mortgage as soon as you’ve found your new build home and paid a reservation fee to the builder. Don’t hang around as there will often be a 28-day deadline from the point you pay your deposit to exchange contracts. Find out more in our Guide to new build mortgages.
Mortgages for new build homes work in the same way as mortgages for older properties, except lenders may not be prepared to loan as big a percentage of the property value as they might with an older property. If you’re buying a new build home and only have a 5% deposit, you may be able to use the Government’s Help to Buy scheme. Find out more in our Guide to Help to Buy.
You’ll start paying your mortgage on the new build property you’ve bought once your property purchase completes. The completion date is usually when the building is finally finished.
Choosing the right mortgage for you can be really tricky.
At L&C our expert advisers guide you through the process. Simple and efficient.
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