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Purchasing a new-build property can be an exciting venture, offering you the chance to be the very first occupant of a brand-new home. However, securing a mortgage for a new build comes with its own set of considerations. Let’s explore what you need to know.
A new-build property is a home that has been newly constructed and has never been lived in before. These properties can be bought directly from a developer. New-build homes are often seen as appealing because they typically come with modern features, energy-efficient designs, and lower maintenance costs.
There are several advantages to buying a new-build property:
While there are many benefits, there are also some drawbacks to consider:
Lenders tend to be more cautious when it comes to offering new build mortgages. This is due to the perceived higher risk associated with the depreciation of new properties. Some key points include:
Based on a mortgage of £300,000 at 75% LTV and 25 years Today’s best buy mortgages
Latest mortgage best buys
See all mortgage best buysSpeak with Us Interest Rate Mortgage Type Monthly Repayment Amount Total Fees Max LTV 4.14% Fixed £1,219 £30 75% 4.18% Fixed £1,216 £1,025 75% 4.18% Fixed £1,215 £999 75% 4.20% Fixed £1,220 £1,403 75%
There are several government schemes available to help you purchase a new build:
Get things moving, apply for a remortgage.
Free unbiased mortgage advice is just a phone call away.
The timeline can vary, but typically it takes around 4-6 weeks to secure a new build house mortgage. This depends on factors such as the lender’s processing time, the need for a property valuation, and whether you’re buying off-plan.
A mortgage agreement in principle (AIP) is a statement from a lender indicating how much they might be willing to lend you, based on your financial circumstances. It’s not a guarantee but can be helpful when making an offer on a new build property.
Yes, lenders will typically require you to have buildings insurance in place as a condition of your mortgage. This insurance protects against risks such as fire, flood, and other potential damages.
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