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New build mortgage

New build mortgage

Your guide to new build mortgages

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Mortgages for new builds

If you are buying a newly built or significantly renovated property, which has not been sold within the past two years, you will need a new build mortgage. There are many benefits to buying a brand-new property, but securing a mortgage without professional help, can be tricky for a variety of reasons which we will cover in this guide.

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New build mortgage interest rates: As the value of the property may decrease over time, new build mortgages are generally perceived by mortgage lenders to be risky. Because of this, you will generally need to pay a higher rate of interest.

New build mortgage deposit: As newly built properties pose a risk to mortgage lenders, the maximum loan to value (LTV) they set for new build mortgages is usually low, which means you may need to save a bigger deposit.

New build mortgage offers: As most mortgage offers are only valid for 6 months, you could have to re-apply for your mortgage, if you are unable to move into your new home, before the mortgage offer expires. If your financial situation has however changed since you first applied for your mortgage, you may not be able to obtain a new mortgage with the same lender.

New build house prices: If the market value of your home changes whilst it is being built, you will still have to pay the agreed purchase price, which could have a positive or negative affect on your mortgage. If the value has increased, you will own more of the equity in your home. But if it has decreased, your lender could lower their original offer or completely withdraw it.  

First time buyer new build mortgages

If you are struggling to save a large enough deposit to buy your first home, you could borrow up to 20% (40% if you are buying a home in London) of the cost of a new home from the government through its help to buy equity loan scheme. The loan can only be used by first time buyers and existing homeowners to purchase a newly built property up to the value of £600,000. But you do not pay any interest on the loan for the first five years and will only need a 75% mortgage and 5% deposit to purchase your new home.

New build mortgage advisors

As a mortgage on a new build house is often more problematic than a mortgage for an older property, seeking advice from an independent mortgage broker could be beneficial. At Fosters Financial, we have excellent relationships with all the UK’s leading and specialist mortgage lenders and can therefore help you to find the perfect deal for your needs.

We know how complicated the new home process can be, so once we have found you the best possible mortgage, we will also handle your entire application to ensure it is a complete success. To book your free, no obligation consultation with one of our friendly new build mortgage advisors, simply get in touch or request a callback later here today! 

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What our customers say

  • We have used Fosters Financial for two mortgages now and each time they were very helpful and professional.

    P.Seaman
  • Excellent service. Everyone we dealt with for our mortgage was very professional, super efficient and friendly

    J.Walker
  • Excellent customer service. Always there to help and easy to get hold of.

    S.Courtney
  • We couldn’t be more appreciative to the team at Fosters for securing the best mortgage deal for us.

    A.Morrison
  • Very friendly service that explained all at every step and was always quick to respond to any questions that we had.

    S.Collinson

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