Benefits of New Build Mortgage

Benefits of New Build Mortgage

Navigating the New Build Mortgage Maze: A Guide for Aspiring Homeowners

Demystifying New Build Mortgages

The dream of a brand new home – fresh, modern, and embodying your vision – is an exciting prospect. But securing the financial key to unlock that dream can feel like navigating a maze. This guide sheds light on new build mortgages, their intricacies, and the advantages they offer.

What is a New Build Mortgage?

A new build mortgage is a residential mortgage specifically designed for financing the purchase of a newly constructed property. These properties are typically defined as being built within the last two years.

Is it Harder to Get a New Build Mortgage?

Obtaining a new-build mortgage can present some additional challenges compared to traditional mortgages for existing properties. Here’s why:

  • Higher Risk Perception: Lenders perceive new builds as slightly riskier due to the potential for the property value to decrease in the initial years. This is because a brand-new house doesn’t have a proven track record in the market compared to an established property.
  • Stricter Lending Criteria: To mitigate the perceived risk, lenders might require a larger deposit (often exceeding the minimum 5% for standard mortgages) or stricter affordability checks.
  • Mortgage Offer Validity: Due to potential delays in construction, a new build mortgage offer may only be valid for a shorter period (around 6 months) compared to the standard 12 months for existing properties.

4 Benefits of a New Build Mortgage (and Why You Might Consider a New Build)

Despite the additional hurdles, new builds offer distinct advantages that can make the extra effort worthwhile:

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Based on 52 reviews
Georgiana Olescu
Georgiana Olescu
2024-04-10
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Paul is an amazing broker, very helpful, responsive to emails and patient with customers. The process with him was quick and easy as his work ethic is impeccable. We are beyond impressed and happy with his services and that we got to work with him.
Valerie O
Valerie O
2023-12-28
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Exceptional service provided by Paul, I could not have asked for better. Definitely does his due diligence and goes above and beyond. Highly recommended!
Bonnie Frost
Bonnie Frost
2023-12-25
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Paul is a fantastic advisor and guided my husband and myself through the entire process of buying our first home, he made the entire process feel easy and we were well informed along with great communication and fast action. We completed within 3 months of contacting Paul.
Johnathan Lowery
Johnathan Lowery
2023-11-16
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Working with Paul has been a hugely positive experience. Paul took the time to understand our needs and financial situation, ultimately securing us a mortgage deal that we would not have been able to obtain on our own. His guidance and patience over an extended time was invaluable in guiding us through a volatile period in the property market. I highly recommend working with Paul at Your Property Financial.
Adeel Sarwar
Adeel Sarwar
2023-10-02
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It has been great working with Paul. He helped us to redeem our help to buy equity loan which didn't seem possible to me when I first contacted him. It took much longer than expected due to many obstacles but Paul explained every step of the process very clearly and he regularly communicated with me to ensure the remortgage went through as efficiently as possible. I would definitely recommend working with Your Property Financial.
Jessica
Jessica
2023-08-29
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I would highly recommend Paul as a mortgage broker. As a first time lone buyer I began the process feeling very out of my depth, particularly in a market where mortgage rates are very high. But from the get go Paul provided reassurance and practical guidance and has been immensely helpful throughout the process. I've really appreciated his responsiveness, honesty and support.
Louise Griffiths
Louise Griffiths
2023-08-28
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I reached out to Paul 2 years ago and giving this review now because I wanted to ensure that I could give a true review of what benefits I have experienced from using his service. I am thrilled with the financial expertise given to me by Paul. His skillful negotiation secured me an excellent mortgage rate within a short turn around time. This has not only set me on the path to paying off my principal balance but has also allowed me to simultaneously build a solid emergency fund. His initial guidance has been invaluable in shaping my financial future. I look forward to working with Paul again, once my 5 year plan is near its end. Highly recommended!
Calum Hebron
Calum Hebron
2023-08-05
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Paul has been consistently excellent, ensuring we got the best possible mortgage deal at a time when rates weren't great. Paul worked with us to understand our financial complexities and went above and beyond to ensure they were understood by mortgage providers. We've been made to understand every stage of the process, and as first time buyers we were able to feel confident in the decisions we made. I would highly recommend working with Paul at Your Property Financial.
Czarina
Czarina
2023-08-04
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My almost a year-long journey with Paul as my broker has been truly amazing, despite a few hiccups during the mortgage process. Working with him has been the best decision ever! As a first-time buyer, I lacked knowledge about purchasing a home, but Paul's guidance and expertise were outstanding. He explained things in a clear and concise way. What impressed me the most was Paul's responsiveness. He promptly addressed all my questions and concerns, never making me feel like a bother. Even when I faced challenges, Paul's determination and problem-solving skills were unwavering. I felt so supported throughout the entire process. Thanks to Paul's unwavering support, I managed to reach this point. I highly recommend him to anyone, especially fellow first-time buyers. Paul's knowledge, patience, and reliability are unmatched. He's not just a broker; he's an invaluable ally in this complex process. Thank you, Paul!
Alistair Prestidge
Alistair Prestidge
2023-07-11
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Paul helped me to get my Mortgage approved in less then 48 hours! He has been great and I can’t recommend him highly enough. His communication is excellent, and he helped me understand each stage of the process easily. Thank you so much for helping me buy my very first home! I will most certainly be recommending Paul to friends & family!

Why Might a New Build Mortgage Be More Difficult?

While the challenges are real, understanding the reasons behind them can help you navigate the process more effectively:

  • Market Fluctuation: The new build market can be more volatile, and lenders want to ensure they have sufficient security (your property’s value) against the loan they provide.
  • Construction Delays: Unexpected delays during construction can disrupt the mortgage timeline, requiring you to potentially reapply for a mortgage if your initial offer expires.
  • Valuation Challenges: Accurately valuing a brand new property can be trickier for lenders since there are no comparable properties in the immediate vicinity.
new build home mortgage

Beyond the mortgage considerations, there are compelling reasons to consider a new build:

  • Energy Efficiency: New builds adhere to stricter building regulations, resulting in lower energy bills and a reduced carbon footprint.
  • Safety Features: Modern safety features like fire alarms and sprinkler systems are often integrated into new builds.
  • Community Feel: Many new build developments foster a sense of community with shared amenities and green spaces.
home loans for new builds

A qualified mortgage broker can be your invaluable partner in navigating the new build mortgage maze. Here’s how they can help:

  • Market Expertise: A broker has a deep understanding of the new build mortgage market and can identify lenders offering competitive rates and terms for your specific situation.
  • Streamlined Process: They handle the legwork of contacting lenders, comparing offers, and negotiating on your behalf to secure the most favorable mortgage deal.
  • Paperwork Assistance: They guide you through the complex mortgage application process, ensuring all the necessary documentation is gathered and submitted accurately.
  • Communication Bridge: They act as a bridge between you and the lender, keeping you informed throughout the process and addressing any questions or concerns you may have.

Taking the First Step Towards Your New Build Dream

By understanding the unique aspects of new build mortgages, their potential challenges, and the significant benefits they offer, you can make an informed decision. Partnering with a skilled mortgage broker can significantly increase your chances of securing the perfect mortgage and unlocking the door to your dream new build home.

Additional Tips:

  1. Start planning early: Research new build developments, get a clear idea of your budget and improve your credit score to strengthen your application.
  2. Be prepared for a larger deposit: Having a higher deposit demonstrates your financial commitment and can make your application more attractive to lenders.
  3. Factor in additional costs: Remember to account for potential

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