Getting a mortgage for a new-build apartment can present a many challenges. If you are buying off-plan, you need to a mortgage offer that will still be valid when the property is complete. You may find certain mortgage providers under value new build properties. If you are a first time buyer, the government’s Help to Buy scheme may give you more options that you thought you had.
As an independent mortgage broker, John Charcol is an expert in helping first time buyers- and others- to move further along the housing chain to secure new build mortgages. We can help you to find the right mortgage to get you the apartment you have set your heart on.
If you plan on moving into a new-build home, you might find that few banks are willing to give you a mortgage on a 10% deposit. A 'Help to Buy' loan from the Government can provide funding for up to 20% of the purchase price, however, this would mean that the Government owns 20% of the property until you pay off the loan.
John Charcol has access to a much wider pool of mortgage lenders for new-builds, so if you wish to get a 90% mortgage without borrowing from the Government, we can connect you with mortgage providers that will offer competitive rates you won't find on the high street.
It's also worth bearing in mind that when moving into a new-build, you'll have to pay stamp duty- although first-time buyers don't pay any stamp duty on property purchases up to £300,000- as well as legal fees and the cost of valuation, not to mention kitting out your new home with furniture.
The Help to Buy scheme opens up all kinds of possibilities for first time buyers. Applicable for new or existing properties priced up to a value of £600,000, a Help to Buy loan can provide funding for up to 20% of the purchase price of a property, helping you to buy with only a 5% deposit.
There are no fees for the first five years, so a Help to Buy loan also has the effect of reducing your overall monthly outgoings, versus paying a fee in other shared ownership deals, where interest or rent is payable on the share owned by the third party – for instance the property developer or housing association. This may mean that you could possibly afford to buy a new build apartment at a higher price range than you originally imagined, although this is limited to 4.5 times income and you can’t own another property, or let the property out.
In a competitive market, many desirable new build apartments sell off-plan or at an early stage, long before the building is ready to occupy. A six-month mortgage offer may time-out before you are ready to complete your purchase.
With new-build apartments, valuations on what the finished property will be worth can vary considerably from the asking price demanded by the developer. Knowing which mortgage provider is likely to value higher can be the difference between securing your desired apartment and missing out because the mortgage offer falls short.
As mortgage experts with years of experience, we can help you to secure a new build apartment mortgage, quickly and efficiently:
To find out how we can help with your new build apartment mortgage, call us on 0344 346 3672 or enquire now.
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If you are a first time buyer considering the purchase of a new build property, the Help to Buy scheme could help you not only get a mortgage, but also with a smaller deposit. Just ask us how it applies to you.
It is difficult for anyone to really know what a new-build property is worth because there is no history of buying and selling. Some mortgage companies may take a more conservative view of the value. You just need to know which one to approach.
It’s up to you how you arrange your mortgage and you shouldn’t feel obliged to use any particular adviser or lender. As an independent mortgage provider we can help you to assess the whole market to find the best options. John Charcol has a wealth of experience arranging mortgages with developers and understands the process and how developers view applications.
Unlike high street lenders we’re fast and nimble, so if you need us to talk to an Estate Agent or make things happen fast to secure a particular new build apartment in a sought after development, we’ll do everything we can to make that happen.
Yes. At John Charcol our consultants are all experienced mortgage advisers and we use our relationships with lenders to convey your personal circumstances to decision makers.