New build mortgages

New build houses can be attractive to home buyers. In general, they offer more structural security than older properties, are more energy efficient and don’t require any renovation work. Despite this, new build mortgages can sometimes be more difficult to get approval for, especially when applying for the mortgage before completion of the property.

Applying for a new build mortgage

Taking out a mortgage on a new build property should be very similar to taking out any other mortgage. However, there are some key things to consider when taking out a mortgage on a brand new house, especially if it’s still in the development stages.

Timing is the most likely challenge that you will face when looking to take out a mortgage on a new build. This is because mortgage offers tend to only be valid for up to six months. This can be an issue if the house you want to buy hasn’t been built yet. Some mortgage lenders might consider extending their offer but this is usually subject to reassessing your application.

Buying a house off-plan

Buying houses that have not yet been built (off-plan) is becoming a more popular trend for house buyers. Customers are becoming more used to buying a house from viewing show homes and building plans. In addition to this, government incentive schemes such as Help to Buy has encouraged new property developments. These schemes are encouraging more first-time buyers to purchase new build properties.

Although slightly riskier than purchasing a house that’s already built, it allows you to be the first owner of a brand new property. Buying off-plan also has other benefits, such as adding fixtures and fittings customised to your own personal taste and requirements. New property developments also offer a way for people to purchase houses in sought after locations.

Other new-build mortgage considerations

Another thing to consider is that mortgage lenders are often stricter on the loan-to-values (LTVs) on new-builds. These are typically far lower in comparison to what lenders will typically loan for an older property. In general, most lenders won’t lend above 85% LTV and 75% for a flat.

What to do next

Speak to a broker

Arrange a callback with one of our expert mortgage brokers who can analise your situation and advise of the best way forward at a time thats convienient for you. Alternatively, use the live chat in the bottom corner.

Complete our form

Complete our mortgage form. Although its not a mortgage application, and will not affect your credit score, it will give you a good indication of what you can borrow and afford, as well as giving our brokers a bit more information about you.