New Build Mortgages
One of the UK's Leading New Build Mortgage Specialists
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New Build Mortgages - Specialists in New Build Mortgages
At New Build Mortgages we aim at helping people get the homes they deserve. We specialise in New Build Properties and the various schemes that you can use alongside those New Build Mortgages.
New Build homes present a wonderful opportunity to own a home. Offering a bespoke build to your specifications. They also have various schemes you can use to help you purchase your home, such as Help to Buy and First Homes.
New Build Mortgages
We specialise in New Build Mortgages, with everything from that New home you want, to Help To Buy and the first homes scheme.
Help To Buy
The Help to Buy scheme offers a 20% (up to 40% in London) Equity loan toward the purchase of an eligible New Build house.
If you are wanting to buy a property but don’t have the income or deposit you need, the Shared Ownership scheme may be the New Build Mortgages option for you.
This scheme lets you part own, part rent your home, so you get more, for less!
This is a newer scheme, offering a minimum 30% discount for First Time Buyers.
This scheme is available on eligible new build mortgages. Get in touch with one of our advisors to find out more.
5* Rated New Build Mortgages Specialist
At Albion Life we are a 5* Rated specialist New Build Mortgage Broker you can trust. Take a look at our reviews if you don’t believe us!
We have been doing this a long time, which is why we are best suited to help you achieve your goals.
Who do we help?
We help people from all walks of life, and of all ages. We specialise in New Build Mortgages, and the various schemes that come along with them.
- New Build Mortgages
- Shared Ownership
- Help To Buy
- First Homes
- Insurance for New Build properties
Is it harder to get a mortgage for a new build?
It may be harder to get a mortgage for a New build home. This is because lenders may be concerned about them not increasing in value as quickly as a second hand home. Therefore, you may need a larger deposit with some lenders.
Can you get new build mortgages at 90% LTV?
You can get new build mortgages at 90% LTV, however, not with every lender. Some lenders may cap New build mortgages at 85% Loan to value.
This therefore means you may need a larger deposit for some lenders, depending on your situation.
How much deposit do I need for new build?
This will vary from lender to lender, and the type of property you are buying, even the location, may change the amount you need in order to buy a new build property.
However, some lenders will consider New build mortgages with as little as a 5% deposit.
Do you need 15% deposit for new builds?
You do not need a 15% deposit for new builds. It will depend on the lender, and your situation. Some lenders require a higher deposit for New builds, however, some require as little as 5% mortgages on new builds.
Can you put 5% deposit on new builds?
A lot of these frequently asked questions are around deposit. However, the one we get asked most often is if you can put 5% deposit on new builds. You can absolutely get 5 percent mortgages on new builds. 95% mortgage on New build homes is possible, however it is not a guarantee with every lender.
You should always consult a specialist new build mortgage broker to discuss your options.
However, it will depend on the lender, and it may be that if you have to use a specific lender due to your circumstances that the lender may require a larger deposit.
How long is a house considered a new build?
This will vary depending on the lender, however some are only considered new build for the first person that buys the property. Once they sell it on it might be considered second hand.
However, others may consider it a new build property for 1,3, or 5 years after it is originally sold.
Are new builds overpriced?
We are often asked this, and it will largely depend on the developer of the houses. However, we do not feel they are necessarily overpriced, but they are certainly not underpriced.
If they were overpriced it would be very difficult to get new build mortgages on them, as the lenders would only lend on their actual value.
That said, they may be worth more than that of second hand house prices that are similar.
Do new builds come with flooring?
This will largely depend on the developer, and the deal you negotiate. Quite often they do not come with flooring. However, you may be able to negotiate as part of the deal that you get floors included.
You should always factor in additional costs like flooring when planning to buy a new build.
Are new builds a good investment?
New build properties tend not to increase in value as quickly as second hand properties in the early years. However, long term they are likely a good investment. They are also quite saleable as they tend to be shiny and new, and come with a warranty in the earlier years.
What should I ask when buying a new build?
- Is the property leasehold or freehold?
- What does your new home include?
- How long is the warranty, what’s included, and what scheme is it?
- Is any other building planned on the site?
- What help is available for new build mortgages?
What types of New build mortgages are there?
Fixed Rate New Build Mortgages
Fixed rate mortgages offer a fixed rate of interest for a set amount of time, usually 2,3 or 5 years.
This therefore means that your monthly payments are also generally fixed during this period.
Fixed rate mortgages tend to have early repayment charges if you want to leave the mortgage during this initial period.
Variable Rate New Build Mortgages
Variable Rate mortgages tend to vary depending on either the lenders standard variable rate or the Bank of England base rate.
This means that as these rates go up and down your monthly mortgage payment may also go up or down.
They may not have the early repayment charges associated with a fixed rate product though, meaning they may be more flexible.
What New build mortgage schemes are available?
Shared Ownership Scheme
The shared ownership scheme allows you to part rent and part buy your new build home. This means that you can either put down a smaller deposit, or have a lower income in order to get the new build mortgage you need.
If you are interested in the Shared ownership scheme there are lots of sites across the UK and you can find them via the Help to buy website.
Help to Buy Scheme
This scheme allows you to get a 20% equity loan (Up to 40% in London) on eligible new build homes. This means you can get a 75% mortgage and put down a 5% deposit in order to get your New build home.
This has various advantages, the biggest advantage being that you may potentially get a better rate of interest as you are getting a smaller new build mortgage.
First Homes Scheme
The Governments First Homes Scheme offers a minimum 30% discount on eligible New Build properties. This means you can buy a property with a smaller deposit and potentially a smaller mortgage.
This scheme is currently available to first time buyers and key workers.The caveat with these properties is that when you sell the property you have to pass this saving on to the next buyer.
You may find that there are local schemes available that offer great deals for new build mortgages. Sometimes they may offer schemes similar to the First Homes scheme, but the discount is not applicable to the sale, only the initial purchase.
It’s definitely worth checking with your local council for affordable homes schemes.
What to expect with New Build Mortgages?
When applying for New Build mortgages you will go through several stages, with our advisors this looks like:
- Initial enquiry and Fact find – We’ll ask some basic questions and work out which lender is the right fit for you!
- Mortgage in principle – Once we’ve found the right lender we’ll apply for your mortgage in principle, this is an agreement from a lender, that in principle they are happy to lend to you.
- Full Mortgage Application – Once you have had an offer accepted on a property we will submit your full mortgage application for you.
What documents will I need?
For New build mortgages you will likely need:
- Proof of your deposit
- Proof of your income i.e. Payslips or Tax returns
- Proof of ID i.e. Passport or Driving license
- Bank Statements
- A solicitor – We recommend a new build specialist, and can point you in the right direction if you need us to!
- Lenders may require other documents such as a P60, so don’t be too surprised if they ask for extra things.