What is a new build?
A new build is typically defined as any property built, first occupied in its current state or significantly modernised, refurbished or altered within the last two years. Each lender has their own definition of what a new build is so the decision as to whether a property meets for the criteria may be down to the valuer at the point of valuation.
Top things to consider:
- Check out the local area for access to good transport links, schools and other criteria which may be important to you.
- Do your research into the developers and builders at the site, check out their previous projects and customer reviews.
- When buying off plan, ensure you are aware of what is included in the price (white goods, a parking space etc)
- Be sure to know the home Insurance and warranty that comes with your new build property and what is covers. Often, this will just include the work completed by the developer so you will also need to ensure your home is covered for other damages such as flooding and fire etc.
Which schemes and incentives could be on offer?
There are a number of government backed schemes including Help to Buy and Shared Ownership to assist with the purchase of a new build property. Some developers may also offer incentives such as free furnishings (carpets, curtains etc) or even financial incentives such as support with Stamp duty, legal fees or offer cash back upon completion. Some lenders will also provide offer extensions for those experiencing delays in the construction of their property.
Which products are available?
Different lenders have specific mortgage products for new build properties and could include free valuations, cash back or other incentives! You may need to be aware that different lenders offer various maximum loan to value products on new build properties so this could effect the size of the deposit you need. For example, some lenders only have a maximum loan to value of 75% for new build flats so you would therefore need a 25% deposit. This is something one of your mortgage can assist you with.
Which lenders are available?
There are a number of different lenders who can offer mortgages on new build properties including Nationwide Building Society and NatWest, our mortgage advisors can research all of the different lenders to see which one can offer you the best interest rate!
