Can You Get a Mortgage on a New Build Home?

You can get a mortgage on a new build home as you would be able to on other home properties. If you are looking to buy a property that has not yet been built or is in the process of being built, this is known as ‘off-plan’. Whilst new build homes are often more expensive than older properties, they are popular because they allow buyers the opportunity to secure an energy-efficient property that will have lower maintenance costs, property chains can be avoided and buyers can choose their own fixtures and fittings according to their needs.


Help to Buy Mortgages

Help to Buy is a government scheme to help first-time buyers get a property with just a 5% deposit. The government then help with this by boosting the amount with an equity loan (usually around 20% but 40% in London where property prices are significantly higher). The new help to buy government scheme can be applied for by buyers until 31 March 2023.

New build properties are included in the help to buy scheme, proving popular with young and first time buyers (this is who the scheme applies to). New build properties up to the value of £600K can be applied for and it must be the purchasers only home. The price range varies in regions across England, with the maximum property value applying to those in London. To apply for the scheme, you must first reserve a new build property with a homebuilder registered with the scheme.


Buy to Let Mortgages

Buy to let mortgages can sometimes be harder to secure on new build properties because of their age and lack of track record. With little evidence in the fact that they can attract tenants and secure rental income, the risk to mortgage lenders is higher. However, with the right advice, they can be quite easily secured.

Often new builds require specialist lenders who deal specifically within that market. Although they can be more tricky to secure, buy to let mortgages on new build properties can be beneficial to buyers because the properties are often more energy-efficient and so cheaper to run and maintain in the long term.


When to Apply for a Mortgage on a New Build

If you’re considering buying a new build property, your first step should be to speak to a mortgage broker. They can help you to work out how much you can afford to borrow from the mortgage lenders and what it is likely to cost. They can also help you to know if you are eligible for home buying schemes (e.g Help to Buy).

If you are looking to purchase a new build home, it is best to do so as soon as possible. Lenders need to be aware sooner rather than later, often the type of mortgage required is one that can cope with a delay between exchange and completion.


Get New Build Mortgage Advice

Need further advice? Get in touch with The Mortgage Mom today. We have a wealth of experience when it comes to advising home buyers looking to secure a new build property and mortgage. We offer mortgage advice in Birmingham and beyond. Alongside new builds, our advice includes first-time buyer mortgages, home mover mortgages, remortgages, buy to let mortgages, bad credit mortgages, life insurance, critical illness, income protection, family income protection and more.

Ready to Sort That New Build Mortgage?

Getting a safe mortgage is essential when buying a new build home. The Mortgage Mom are here to make sure that happens.

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