Buying Guide: New Build Mortgages

When purchasing a new build home for the first time, we often find that people feel a little daunted, or believe there is a different process to mortgaging a home.

They couldn’t be more wrong. The process is very much the same.

As with any home purchase, as a buyer, it is recommended that you source multiple offers from different lenders. This allows you to get the best deal for your situation.

Mortgage brokers often have access to deals you won’t find on comparison websites - they are usually well equipped and knowledgeable on the process of purchasing a new build too.

So, what is the new build buying process?

There are often two ways you can purchase a new build. Either as a property (meaning it is fully built) or off-plan (before its built). The latter will mean you’ll need to obtain a mortgage in principle, which gives you six months to move into your property before you’ll need to resubmit your financial details for a new mortgage offer.

A mortgage in principle (for a new build or otherwise) is essentially a figure which outlines the sum your lender will be willing to give to you, and proves this to your developer so you can go ahead with your home reservation.

Buying off plan has its benefits - not only are you securing your preferred plot early, sometimes your house may have gone up in value before you’ve even moved in!

Purchasing a complete home is a much quicker process, because the property is more or less ready for you to move in. With this, the process is as simple as purchasing an older home and you could also be moving in within 28 days of your reservation!

If you’d like to know more about our latest projects, take a look at our newest homes or get in touch.