What’s the mortgage process for buying a new build home?
As we’ve seen from our previous article, there are many reasons why you might want to buy a new build home. Many people like the fact that the property comes with the safety net of guarantees, plus you can choose your own fixtures and fittings that suit your style, putting your own stamp on your new home. But the question on many people’s mind when it comes to new builds is, is the mortgage process any different?
In the majority of cases, applying for a mortgage on a new build property isn’t any different to applying for a mortgage on an older property. There are just a few extra things to be aware of before you get started.
Regardless of the type of property you’re buying, we always advise that you’re as organised and as mortgage ready as possible to put you in the best position. When it comes to buying new build homes, you need to be even more ahead of the game as when you put down a deposit, you often only have 28 days to exchange.
Some property developers have been known to offer incentives if you buy their property. These can include: wavering stamp duty (unless you’re a first-time buyer) or reducing legal fees, for example. Developers tend to do this rather than reduce the price of the property, and these incentives can work well with first-time buyers who are looking to cut costs wherever possible.
Any mortgage offer is only valid for six months, so you’ll need to bear this in mind when it comes to applying for your mortgage. If you complete after the six month period, some lenders will extend the offer but there may need to be a reassessment to review your financial position if a certain period of time has passed. If you’re buying a property off plan, this shouldn’t throw up any additional problems as the same rules apply.
To speak to our new build mortgage specialists, please feel free to contact us today and we can help get you one to step closer to being in your new home.
For further information call: 01789 201 914
Or email: firstname.lastname@example.org
Contact our expert advisers now
Call free from landline or mobile
Not the right time for a call? Email us and we can arrange a good time to discuss your needs
What protection should i consider when getting a mortgage? For most people, the biggest expense in life will be the mortgage for their house, so it makes sense that you think about getting protection in case you need help to pay your mortgage at some point in...
What is a ‘Mortgage in Principle’? When you are in the early stages of applying for a mortgage, you may come across a number of terms that you are not familiar with or that you do not fully understand. The term ‘Mortgage in Principle’, sometimes referred to as a...
How to Get a Credit Score for Free There are certain times when it is important to have a good idea of how your financial background will be regarded by potential lenders, for instance, when you are applying for credit and particularly if you are applying for a...
Does gambling affect your mortgage application? Applying for a mortgage is a process that will involve heavy scrutiny of your financial history and current income and expenditure. A house mortgage is probably the biggest loan you will ever take out, so banks will do...
Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances and loan amount. The fee is up to 1.5%, but a typical fee is 0.67% of the amount borrowed.
©2019 |CAPC is a trading name of Christopher Allen Private Clients Limited which is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the financial conduct authority.
Christopher Allen Private Clients Limited. Registered Office: 7 Arrow Court, Adams Way, Alcester, Warwickshire, B49 6PU. Registered in England Number:08820469