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.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.