A ‘new build’ property is one that has been built within the past two years or has been substantially renovated within that time period, nor has it been sold during the past two years. If you are purchasing a property that is in the process of being built or whereby the work has not begun, this is known as off-plan. If you are looking for a new build mortgage, we can help you to find the right mortgage for you.
What are the reasons to consider a new build home?
There are a number of different benefits that are associated with new build properties. This includes the fact that these properties tend to be in better condition when compared with older homes, which can mean reduced maintenance and repair costs. In addition to this, new build properties tend to be more energy efficiency.
You may also be able to select your own fittings and fixtures, such as appliances, lighting, tiles, and flooring. In addition to this, by opting for a new build, you may be able to avoid some of the expensive delays of the typical house-buying process, for example, property chains.
What are some of the drawbacks associated with new build properties?
All properties have their pros and cons, and new builds can be no different. Well, a new build can often mean a more expensive property. In addition to this, you are likely going to need to pay a reservation fee to the developer in order to secure your plot if you have decided to purchase an off-plan property.
If you pull out of the purchase, it is very likely that you could lose this money. You may also encounter delays if you purchase a new build home off-plan, as construction can be held up for a number of different reasons.
Securing a mortgage for a new build property
It can be more difficult to get a mortgage for a new build. This is because it is not uncommon for higher interest rates to be charged on new build properties. This is because lenders believe that there is more risk associated with this type of mortgage, as there is the possibility that the property’s value may fall within a few years. Of course, this does not always happen. However, because the property will lose its ‘new’ tag, this can cause the value to initially fall.
Moreover, you need to remember that your mortgage offer will typically only last for around six months when you buy a property off-plan.
At Fosters Financial, we can help you to manage all of this and make sure that you get the right mortgage deal for you.
Call us today on 01206 911401 to discuss your options in further detail.