New Build Mortgages

New build property: Good to know

1. Lender restrictions
   
   If you have a relatively low deposit, some lenders may restrict the number of schemes available for the purchase of new build homes. We have access to the whole of market including a number of exclusive deals not available from high street lenders.
2. Incentives
   
   Incentives offered by house builders, such as paying your legal fees or granting you a 5% deposit, can be an attractive reason to buy a new build home. However, lenders may not accept these incentives and may ask for a bigger personal deposit. Our mortgage advisors will work with you and the developer to confirm the acceptable incentives and help you get the best outcome.
3. First Homes Scheme
   
   The UK government’s First Homes scheme helps first-time buyers and key workers purchase new build properties at a discount, typically at least 30% below market value. These homes must be new builds and remain discounted for future buyers, making homeownership more accessible for those who might otherwise struggle to get on the property ladder.
4. Sub-sale
   
   In some cases, you may be buying from someone who has already agreed to buy the property from the developer. They would have usually agreed this a number of months (sometimes years) ago. They have then decided to sell the property to you without ever taking ownership. This is classed as a sub-sale and introduces an additional layer of complexity. Many lenders exclude sub-sales in their policy and others have a valuation based on the price the original purchaser agreed. This can have a dramatic impact on the Loan to Value you can arrange, which may mean a larger deposit than you expected is required. We have access to lenders that will base their lending on the price you are paying for the property, which may allow you to secure a mortgage for the required amounts at a competitive rate.