Top Mortgage Solutions
Reviews and Ratings for Financial adviser Simon Rushbrooke, Southampton

New Build Mortgages

remortgages

Purchasing a build home can be both exciting time and appealing given the many offers being promoted, including shared ownership, part exchange and Government incentives, such as the Help to Buy Equity Loan Scheme.

As a result new home buyers are often overwhelmed by the number of options to choose from. That’s why it’s important to get impartial new build mortgage advice, making sure you are aware of all the choices made available from various mortgage lenders.

The new build mortgage process can be more difficult than for an older property, particularly if you’re buying off-plan.

Our new build mortgage experts will ensure you find the lender most likely to be able to help you as well as secure the best mortgage deal for your needs.

New Build Timescales

Developers often work to tight timescales. Once you have put down any upfront fees you may have only up to 28 days to exchange so it’s important that these timescales are factored in when considering a suitable mortgage lender.

Top Mortgage Solutions will advise you on the best new build mortgage lender that not only matches your individual need but is best positioned to meet these deadlines.

New Build Upfront fees

When you buy a new build property developers often ask for a reservation fee to secure your plot, if you later change your mind about the property, or if the mortgage doesn’t complete on time, you may lose the fee.

New Build Incentives

New Build developers may advertise incentives such as paying for, or contributing to, stamp duty and/or legal fees and it is not uncommon for mortgage lenders to take these into account.

Whilst many of these will be acceptable to many new build mortgage lenders – typically to a maximum value being around 5% of the purchase price – the mortgage lender may factor it in when deciding how much to lend.

New Build Guarantee.

All mortgage lenders check upfront what kind of guarantee comes with the new build property and need to be satisfied with the guarantee in order to offer a mortgage.

Many new build properties will come with a ten year NHBC certificate which guarantees the build for ten years, but there are lots of alternatives including guarantee from the developer and the Zurich certificate.

Help to Buy

Help to Buy has been available for some time with the equity loan scheme being aimed at helping buyers of new build property.

In essence, the Government provides up to a 20% equity loan (which comes with no cost in the first 5 years) and the buyer must put down 5% of their own money. The remaining 75% of the purchase price can be funded through a mortgage.

The equity loan does need to be repaid eventually and although arguably comes at a low cost, even after initial 5-year period, when the property is sold the same percentage (as originally borrowed under the scheme) of the sale price becomes repayable.

For information on the Help to Buy Equity Loan Scheme to include, monthly loan repayments after the initial 5 years and maximum qualifying property values, please click here.

New Build Mortgage Deposit

New build mortgage lenders continue to limit the maximum percentage of the purchase price that they will lend, especially on flats.

The amount of deposit needed varies but new build houses and flats, often requiring a 15% or 20% deposit so you may decide to look for government help through the Help to Buy equity loan scheme as mentioned above.

As you can see, in certain circumstances it may be possible to obtain up to a 95% new build mortgage.

Top Mortgage Solutions will advise you on the best new build mortgage lender that not only matches your individual need but is best positioned to meet these deadlines.

New Build Mortgage Offer Periods

New build mortgage offers are usually valid for 6 months on purchases, however, it could take longer than this for the property to be built. Many new build mortgage lenders are prepared to extend an offer under certain circumstances and some lenders offer specific new build deals that have deadlines up to three months longer than their standard expiry date. Therefore, buying a new build property off plan should not present a major problem.

If the property completion date is unlikely to be within the specified timeframe some lenders may want to recheck the application and could decide not to lend if circumstances such as your income have changed since your initial mortgage application.

Top Mortgage Solutions will advise you on the best new build mortgage lender that not only matches your individual need but is best positioned to meet these deadlines.

Mortgage Advice

Z Access to exclusive mortgage interest rates

Z Access to more than just High Street lenders

Z Self-Employed products available

Z Bad Credit considered

Z Solutions for Buy to Let or Let to Buy

Z Access to Secured Loans

Z Access to Bridging finance

Z Access to Commercial Mortgages

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (www.http://www.financial-ombudsman.org.uk/consumer/complaints.htm). You may be able to submit a claim through the EU Online Dispute Resolution Platform (https://webgate.ec.europa.eu/odr/main/?event=main.home.show if you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.)”