Compare Market Leading New Build Mortgages

How to get a new build mortgage?

Check Affordability: The Mortgage Broker can quickly tell you how much you can afford. It is possible to get same day agreement’s in principle.

Property Search: Whether you have found a property or not, you can still check affordability. Search online and development sites.

Pay Reservation Fee: Be sure to check on the refunding status, as typically these are non-refundable. However, The Mortgage Broker will of course be on hand. Once we have the reservation form, the deadline starts unless being bought off-plan.

Submit Mortgage Application: Your Mortgage Adviser will ensure all is up to date and your application is packaged correctly.

Mortgage Offer: The lender will complete a mortgage survey and approve your application.

Legal Process: You can either get a conveyancer preferred by the lender, or The Mortgage Broker have a vast panel with expertise in different areas.

Once this is all done – you will be a homeowner!

What schemes are available on new build properties?

Help to Buy is unfortunately ending in 2023 and the end date for new applications is approaching fast. You have to apply for the Help to Buy scheme through the government and new applications end on October 31 2022.

Also, the property has to be ready to be lived in by 31 December 2022. So while the final deadline is March next year, if people are looking into it now it’s almost too late.

What is the deposit unlock scheme?

This is a new scheme with home builders and lenders. There aren’t too many lenders on it at the moment but more will be coming on board. It’s for First Time Buyers and home movers. There are few restrictions in terms of the maximum loan available, but basically it allows you to buy with a 5% deposit on a new build property.

While you can get a 5% deposit with a standard mortgage, there’s less availability, so this is designed to increase the number of mortgages out there. It works directly with the home builders. This one is going to be big, particularly with Help to Buy ending.

What is shared ownership and how does it work?

Shared ownership is another great scheme. You can buy a percentage of a property and the rest is owned by the housing association. These are not always available on new builds, but a lot of new developments offer these as a route to affordable housing. It helps people get on the property ladder.

I know plenty of people that have used the scheme to very good effect. With shared ownership you can ‘staircase’ up. If for example you buy a 50% share initially, after a few years you can buy more of the property using the equity, and repeat that all the way up to 100% where you’ll own the property outright.
The key is that you will pay rent to the housing association for the percentage you don’t own, alongside your mortgage payment.

What is a joint borrower sole proprietor mortgage?

This is commonly known as JBSP and sometimes Joint Borrower Sole Applicant. Again, it’s another great option and more lenders are doing this now.

It’s popular where a younger borrower or borrowers want to buy a property and their income’s just not enough to qualify for a mortgage. Maybe their parents own a property or have surplus income, in which case they can be added onto the mortgage to boost affordability. The parents won’t be on the deeds of the property, so it doesn’t cause any issues with stamp duty.

That’s one of the big selling points of this. It’s almost like a guarantor mortgage – it enables you to borrow more than you could through a standard mortgage.

It can also work the other way, where an older borrower uses their son or daughter’s income to help them buy a retirement home. A lot of the time within five to ten years the buyer can remove the guarantor from the mortgage and carry on independently. It’s a good way to help buyers get on the ladder.

 

Are there any disadvantages?

In terms of the cons, if the property is not built you can’t physically see what you’re buying. You basically buy a show home. But you might view a five bedroom detached house with a lovely garden, but if you’re buying a two-bed terraced property that’s not really going to give you a fair reflection.

It’s also widely known that you potentially get less for your money in terms of size of rooms. Because of the way the housing market is these days, developers try to get as many houses on a site as possible. Sometimes gardens and rooms are not as big as with properties built in the 1960s and 1970s.

It’s not always the case, but potentially as the first people to move into the property, there could still be lots of building work going on around you. The roads might not be finished and there may be construction noise for a while.

How can the Mortgage Broker help me with a mortgage on a new build?

A broker helps by offering more options and making things simple. You could personally search a few lenders, but where should you start? As expert brokers, we know the lenders that are good for new builds, who offer the best affordability calculations, whose criteria will fit, and the best available products for each individual client.

It will save a lot of time and money. We will look holistically at your circumstances and the best product available for you. We also guide you through the process from start to finish. We can recommend solicitors, answer
any questions about buying the property, complete your application or get you on the Help to Buy scheme.

We’re here to advise and hold your hand all the way through. If there are any issues we can assist you through it all. We essentially take the stress away – it’s what we do day in, day out so we know how to deal with any situation.

If you have any questions, we’re always here to help – just give us a call.

Your home may be repossessed if you do not keep up repayments on your mortgage.