New Build

Buying a new build property comes with additional challenges and timescales when compared to buying a second hand property. Our New Build team are here to guide you through this process. Get in touch with our new build team here.

New Build

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“Our New Build Team at The Mortgage Mum are committed to helping our clients navigate the fast paced world that is New Build mortgages. Our expert brokers are on hand to guide you through the process and to deal with enquiries quickly, to help you meet the deadlines set by your developer. We help to keep everyone updated, easing the pressure off of our clients, while educating and answering any questions along the way. Our clients always remain our highest priority.” Charley O’Neill, Head of New Build at The Mortgage Mum.

Why choose us?

Buying a new build property is so exciting!

But it’s a bit different to buying an older property.

That’s why you need a broker who is going to hold your hand through the process and guide you until that exciting day when you put your key in the door of your beautiful brand-new home!

The Mortgage Mum New Build Team are experts in New Build mortgages and understand that each purchase is different. We recognise how unique your journey is to you, and we’re here to support and guide you through it.

What makes a new build mortgage different

There are different challenges and things to consider when your purchasing a new build property.

EXCHANGE DEADLINES Once you have reserved your property there will be a timescale in which the developer or builder will have set for exchange. Speed and accuracy with your mortgage application are therefore important to help things run smoothly.

LENDER CRITERIA Lenders criteria around new builds can be different than their standard criteria.

INCENTIVES Builders often offer incentives when purchasing a new build property, which is one of the reasons that buying a new build can be such a great option for many buyers. Lenders have rules around which incentives are acceptable and limits on these too, it’s important that your broker understands the incentives being offered and aware of lenders current criteria.

COMPLETION DATES A typical mortgage offer is valid for around 6 months, this may not be long enough for a new build property and your offer may need to be extended. Not all lenders will allow this and all have different processes and guidance on how long an offer can be extended for, so it’s important that you mortgage is placed with a lender who can provide you with a mortgage offer that can be available when your property is due to be completed.

Is it harder to get a mortgage for a new build property?

Not necessarily!

In the past it was harder to get a mortgage for a new build property, especially if you had a low deposit.

The reason for this is that despite new build homes being constructed with highly regulated and often energy efficient materials, they can depreciate in value quickly. That means they can be difficult to resell.

What it meant for those buying a new build is that you needed a bigger deposit, especially for a new build flat.

Previously, you’d have to fund a deposit of 15 or 25% for a new build property.
However, thankfully the market has shifted, and it is possible to get a mortgage on new build flats and houses at up to 95% LTV, subject to lenders criteria and affordability.

You need the right guidance, and you need someone who will navigate the new build mortgage market on your behalf. That’s where we come in.

How do I get a mortgage for a new build property?

To arrange your mortgage, we will need to gather some more information to be able to give you our bespoke advice. We will meet you in a way that suits you, and this can be done face to face, or over Zoom, Teams or telephone. We want to make the process as easy and convenient as possible for you!

You may have already found “the one” and paid your reservation fee with a new build development, in which case the new build developer will be looking for an Agreement in Principle from you as soon as possible.

Otherwise, if you haven’t yet found the property for you, it’s time to get organised!

Book in with one of our team today for a free discovery call to find out how we can help you!
It’s important to recognise that new build mortgages DO work differently. Here are just some of the reasons why:

  1. Your mortgage offer may expire before your new build property is complete
  2. The mortgage lender will want to do a valuation of the property, and this may need to happen when the property is fully built and habitable. Timing is essential! A broker can guide you through what the lender feels comfortable with, and organise everything on your behalf.
  3. You may wish to take advantage of a Government scheme to support your new build mortgage application. Let us guide you through your options New Build First Time Buyer

Ultimately, every property and every case is unique, so you need someone you can rely on throughout the process to guide you through.

10 STEPS TO BUYING A NEW BUILD

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Affordability and agreement in principle
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Reservation
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Mortgage and protection appointment with your broker
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Mortgage application
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Valuation
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Mortgage Offer
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Legal paperwork
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Exchange (usually within 4-6 weeks of reservation)
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Build finishes
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Completion – get the keys

Speak to an expert

We will work at times that suit you and your family, carrying out appointments via video call, telephone or email, giving you the benefit of first class service, around your own schedule, and in the comfort of your own home. So let us handle your mortgage today and find out how well we can look after you, The Mortgage Mum way!

Pros of new build

There are lots of good reasons to choose a new build home…

They’re new. It’s a blank canvas: fresh paint, fresh carpet, fresh kitchen, fresh bathrooms. You’re the first people to live there. There’s very little, if anything, that you need to do. You can simply unpack your belongings and enjoy your new home.

Good for First Time Buyers. A new build home is often the only way to get on the property ladder and that’s thanks to government schemes. You also often get incentives from developers too. They might pay for your stamp duty or the cost of carpets, for example.

Design options. If you’re buying off plan, you might have a say in layout and fittings.

Energy efficiency. Your bills should be better off as new homes have an A or B energy performance certificate rating. In today’s climate this has become the number one reason why people are choosing a new build property.

Chain free. There’s no buyers before you, which can be a big stress when you’re buying a property.

Ten year warranty. You are covered for any structural problems or issues for ten years. Please check who your cover is with when purchasing a new build.

What are the cons for new build property?

Size. A lot of people say that new build homes are smaller, with smaller rooms. Usually ceilings aren’t as high and storage isn’t generally as good.

Depreciation. As soon as you move into a new home it’s no longer brand new, so in the first year it may fall in value. If a new development is popping up across the road new buyers will be likely to opt for that. We always advise that you think longer term when buying a new build.

Private management. There may be maintenance fees or service charges you have to pay. It’s not always the case, but it’s something that you do need to be aware of.

Conveyancing. The legal work on a new build is a bit more complicated so make sure you have a good solicitor with experience in new build conveyancing. We can recommend solicitors if you’re stuck.

Snagging. Some people buying new build properties have experienced poor quality. My friend had to move into another property so that they could rebuild her home, which was incredibly frustrating. But snags often annoy people the most. Builders trying to get a project finished or who are over budget may well cut corners.

Delays. New developments don’t always run to plan and that can be inconvenient if you’re in rented property and are waiting to move.

Mortgage Offers. Mortgage offers do have an expiry date and we have to bear that in mind when we apply for your mortgage. We know which lenders are able to offer extensions, so we’ll always help you choose the right lender for you.

How can The Mortgage Mum Help you?

Here at The Mortgage Mum, we have access to products not available on the high street and exclusive deals which enables us to have access to mortgage deals that you may not otherwise find.

We can also advise you which lenders are most likely to accept your application before applying for a mortgage. This will save time, money and potential disappointment of a rejected application.

There is lots to consider, and we want you to enjoy the fun part – building your Pinterest board and planning how you’ll decorate and furnish your brand-new home!

Let us guide you through the rest!

Listen to our podcast about New Builds

New Build

Own New Scheme

Welcome to this month’s episode of the Mortgage Mum podcast with me, Charley O’Neill, Senior Mortgage and Protection Broker here at the Mortgage Mum.  This month’s episode is an exciting one, as we focus on an amazing new initiative to help people access lower interest rates when purchasing a new

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New Build

New build Journey

A real life new build purchase journey & how to add character to your new build property Welcome to this month’s episode of The Mortgage Mum Podcast with me, Charley O’Neill, Senior Mortgage and Protection Broker here at The Mortgage Mum. I’m delighted to bring you this episode on new

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Want to find out how we can help with your New build? Click here To find out more about our team  Click here