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.

As a mortgage on a new build house is often more problematic than 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!

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.
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.
Mortgage offer

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.
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.
Help to buy

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.

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We have helped hundreds of home movers just like you!

Thank you Joanna for such a lovely experience! Joanna was so helpful and efficient at keeping us informed throughout the process of getting our mortgage approved. We would highly recommend Joanna and the team.

Emily-Jane Lowe

2021-01-19

A huge thank you to both Jonathan and Gemma for all they have done to assist us in our mortgage application. They've stayed on the case for us throughout the process even though it's been difficult due to lockdown delays etc. but we now have our offer so we're delighted! I've worked with Jonathan for a while now on both business and personal lending requirements and he is always professional, helpful, efficient and will pull out all the stops to find the right product for me, even when I'm not sure what route I want to take! I would have no hesitation in recommending Fosters Financial.

Karen Hall

2021-01-13

Fantastic service from start to finish. Kind, helpful, professional. Nothing was too much trouble, made a stressful time stress free. Highly recommended.

customer

2021-01-12

Joanna Everett at Fosters Financial has been absolutely amazing throughout my whole mortgage process. Having had a difficult experience with a broker at another firm Joanna was like a breath of fresh air. Knowledgable, approachable, prompt and professional - I can't thank her enough for turning around my house buying experience!

Antony

2020-12-16

John, Tracy and Gemma have given service which has been second to none as always. Thank You. Would highly recommend.

Nigel

2020-12-15

Good experience with Fosters Financial Sian was very helpful and explained things to me in much detail (first time buyer) I always felt like I could ask any question that I needed to. She made the process as stress-free as possible and I would 100% recommend Sian and Foster's Financial. Worth every penny!

Lauren Inez Renda

2020-12-08

Couldn’t recommend Fosters Financial enough!

Johnny Hulus

2020-12-06

Really happy with the service received from Foster Financials. Very friendly and approachable staff and answered all my questions throughout the application process. Highly recommended!! Thank you Sian and Connor :)

Eli

2020-12-05

Can't recommend highly enough. Professional, friendly and fair. They went above and beyond and nothing was ever too much trouble. Excellent all round.

Lindsey Ilsley - Martha Elma

2020-12-04

Fantastic service! 2nd time we have used fosters for our mortgage! Quick and amazing results Thank you Johnathan