Different Types of Mortgages

Looking at purchasing that fresh new home. A new build mortgage is a type of mortgage specifically designed for clients who are purchasing a newly constructed property. These mortgages are tailored to accommodate the unique circumstances and considerations associated with buying a new build home. Here are some key features of a new build mortgage:

1. Deposit requirements: Lenders may require a lower deposit for new build properties compared to traditional mortgages. This is because new build homes are considered less risky in terms of structural issues or repairs.

2. Mortgage offers: Some lenders offer specific mortgage products for new build properties, which may include incentives such as discounted rates or cashback deals.

3. Valuation and survey: Lenders may require a valuation or survey specifically for new build properties to ensure the property’s value matches the purchase price and that it meets the necessary standards.

4. Build completion timelines: New build mortgages often have specific terms related to the completion of the construction. The mortgage offer may be valid for a certain period, and the lender may release funds in stages as the construction progresses.

5. Help to Buy schemes: There are government-backed schemes like Help to Buy that provide financial assistance to buyers of new build properties. These schemes can offer favourable terms and incentives for new build mortgages.

It’s important to note that the specific terms and criteria of new build mortgages can vary between lenders, so it’s advisable to seek advice from one of our mortgage brokers who can guide you through the process and help you find the most suitable mortgage for your new build property.