New Build Mortgages

Specialised mortgage solutions for new construction properties. Get expert advice on new build lending criteria, incentives, and the unique considerations when buying a new home.

Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

New build mortgages

What are New Build Mortgages?

New build mortgages are specifically designed for properties that are newly constructed or recently completed. These mortgages have unique requirements and often come with special incentives from developers.

New Construction Properties

Mortgages for properties that are newly built, typically within the last 2 years, or still under construction.

  • Properties under construction
  • Recently completed homes
  • Off-plan purchases

Developer Incentives

Many developers offer incentives such as deposit contributions, stamp duty payments, or furniture packages.

  • Deposit contributions
  • Stamp duty payments
  • Legal fee contributions

Warranty Protection

New builds come with comprehensive warranties, typically 10 years, covering structural defects and major issues.

  • 10-year structural warranty
  • NHBC or similar protection
  • Peace of mind

New Build Lending Criteria

Lenders have specific criteria for new build mortgages, including loan-to-value ratios, property age limits, and developer requirements.

Loan-to-Value Limits

Most lenders offer up to 95% LTV for new builds, though some may require larger deposits for certain developments.

Property Age Limits

Properties must typically be less than 2 years old to qualify for new build mortgage rates and criteria.

Developer Requirements

Lenders may have approved developer lists or require specific warranties and certifications.

Completion Timeline

Mortgage offers typically have completion deadlines, usually 6 months from offer date.

Benefits of Buying New Build

New build properties offer several advantages over older homes, from modern design to energy efficiency and warranty protection.

Key Advantages

New build properties offer numerous benefits that make them attractive to buyers:

Energy Efficiency: Modern building standards mean lower energy bills
Low Maintenance: Everything is new and under warranty
Customisation: Often able to choose finishes and fixtures
Incentives: Developer contributions and packages
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Typical New Build Incentives

Deposit Contributions: Up to 5% of property value

Stamp Duty: Developer pays stamp duty

Legal Fees: legal fees

Furniture: White goods and furniture packages

Service Charges: First year service charges paid

Mortgage Fees: Arrangement fees covered

These figures are only illustrative. All mortgages are subject to the applicant(s) meeting the eligibility of the specific lender. An assessment of your needs will be confirmed before a recommendation can be made.

The New Build Process

Buying a new build property involves a different process compared to existing homes. Understanding the timeline and requirements helps ensure a smooth purchase.

1. Choose Your Plot

Select your preferred plot and reserve it with the developer, usually with a reservation fee of £500-£2,000.

2. Get Mortgage in Principle

Secure a mortgage in principle to confirm your borrowing capacity and show the developer you're a serious buyer.

3. Exchange Contracts

Exchange contracts with the developer, typically 28 days after reservation, securing your purchase.

4. Construction Period

Monitor construction progress and prepare for completion, which can take 6-18 months depending on the development.

5. Pre-Completion Inspection

Inspect the property before completion to identify any snagging issues that need to be addressed.

6. Completion

Complete your purchase and receive the keys to your new home, with all warranties and documentation in place.

Important Considerations

While new builds offer many benefits, there are important factors to consider before making your purchase decision.

Construction Delays

New builds can experience construction delays, affecting your completion date and potentially your mortgage offer.

  • Weather delays
  • Supply chain issues
  • Planning complications

Snagging Issues

New properties may have minor defects that need to be addressed after completion, known as snagging.

  • Cosmetic issues
  • Minor defects
  • Warranty coverage

Market Value

New builds may be priced at a premium compared to similar existing properties in the area.

  • Premium pricing
  • Developer margins
  • Market comparison

Ready to Buy Your New Build Home?

Get expert advice on new build mortgages and most appropriate deals for your new construction property purchase.

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