8 Top tips for getting a New Build Mortgage
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Speak to a mortgage broker
Before you start looking at New Build homes, speak to a mortgage broker. It’s vital you understand what you can afford and how the new build application process works. We’ll crunch the numbers and work out how much you’ll be able to borrow. And, we’ll explain the application process too. Essentially, we will be your go to person for any questions you have about your mortgage and we will be by your side from application to completion.
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Understand the new build mortgage process
You’ll apply for a new build mortgage in a similar way to a normal mortgage. However, the process can be more complex. This is because there is often a long delay between exchange and completion. Additionally, with new build homes you often only have 28 days from reserving the house to exchanging. So the sooner you speak to your mortgage adviser to start the application process, the better.
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Look at the Government Schemes
If affordability is an issue, you may need some advice on the schemes available to help you purchase a New Build Home. We understand these schemes and can help you decide whether they are suited to you. The main schemes are the Shared Ownership Scheme, Deposit Unlock, Forces Help to Buy and the Mortgage Guarantee Scheme.
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Look at the Developer Schemes
Some developers offer new build incentives. These might include having your stamp duty or legal fees paid or other incentives to entice you to buy. Lenders will take these incentives into account when considering how much to lend you. New Build incentives can reduce the amount you will be able to borrow. Our team will be able to advise you as to whether new build incentives will impact on your mortgage.
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Ensure you pick a lender suited to New Builds
Your lender will need to know that you are buying a new build. This is because you may need a mortgage that is arranged with a long delay between exchange and completion. Otherwise, there’s a risk that your mortgage offer might run out before your home is ready to move in to and then you’ll need to start the process again. If you use a mortgage broker like us, we will understand this and ensure you are covered.
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Understand the costs involved including reservation fees
With most new builds you will need to put down a reservation fee to secure your property. You need to consider this within your overall affordability. There are other costs involved with buying a house. If you’re buying a house over a certain amount you might have to pay Stamp Duty. Added to that there’s removal costs, Conveyancing costs, Estate Agents Fees etc. When you meet with us, we will break down how much these costs are likely to be and it’s essential you set aside this money.
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Get an AIP
It can be helpful to get a mortgage agreement in principle (AIP) before you begin your property search. This will show new build developers that your lender will, in principle, lend you the amount you need to buy the property. Your Mortgage Broker will secure this for you and then you’ll be able to proceed with looking for and reserving your property.
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Start house hunting!
When you find your dream new build home, make sure you take a little time to do some research before making an offer. The National New Homes Customer Satisfaction Survey on the Home Builders Federation website is a great place to start as it rates developers based on what real customers think.
Why Choose Your Mortgage Expert?
We hope our 8 Top tips for getting a New Build Mortgage have been useful. If you need any further advice, we would love to chat. Not only do we have access to the current deals on the market, some of which are not available on the high street directly. We also have extensive knowledge of all the current Government schemes designed to give you a helping hand.
Interested in Shared Ownership? We can help. Only have a small deposit? We can advise you on that as well.
By speaking to Your Mortgage Expert, you’ll get access to expert New Build mortgage advice. We can help you work out how much you can afford to borrow, what your repayments would be and what type of mortgage is most suitable for your personal circumstances. And, if you need it, we can break down all the jargon so you understand whether to opt for a tracker mortgage, fixed rate mortgage or something more flexible.
We aren’t like other brokers. Our small, friendly team has over 80 years of experience in the mortgage and protection industry.
With over 100 five star reviews on Google and over 90 verified reviews on VouchedFor, we would love to work hard for you.
To speak to a member of the mortgage advice team about your New Build mortgage ring Your Mortgage Expert now on 01722 322683. We are based in Salisbury but we can help you no matter where you live in the UK.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.