Why can new-build mortgages become complicated?

Getting a mortgage for a new-build apartment can present many challenges. If you're buying off-plan, you need to secure a mortgage offer that will still be valid when the property is complete. You may find certain mortgage providers undervalue new build properties.

As an independent mortgage broker, John Charcol is an expert in helping to arrange mortgage deals for all sorts of buyers - we can facilitate the arrangement of first-time buyer mortgage deals, specialist mortgages and even property development finance - so feel confident we can assist you with your new build mortgage and help you secure the apartment you have your heart set on.

New Build Deposits

If you plan on moving into a new build home, you might find that few banks are willing to give you a mortgage with a house mortgage deposit of 10%.

John Charcol has access to a much wider pool of mortgage lenders for new builds; we can help you access competitive rates that 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 £425,000 - as well as legal fees and the cost of valuation, not to mention kitting out your new home with furniture.


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Considering time-outs and under-valuations

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 6 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.

John Charcol – finding you the right new build mortgage 

As mortgage experts with years of experience, we can help you to secure a new build apartment mortgage, quickly and efficiently: 

  • As a first time buyer - or homeover - we can help you to secure the best available rate
  • We can time a mortgage offer to ensure that it is most likely to be valid when your apartment is ready for occupancy
  • We know which mortgage providers are most likely to meet the valuation you need for your purchase
  • If your credit score is not brilliant, perhaps because you have moved around a lot or changed jobs frequently, we can approach lenders who will look beyond the score

John Charcol Expert Tip - February 2024

"Navigating the mortgage process on a new build offers exciting opportunities, albeit with some unique considerations. When purchasing off-plan, securing a mortgage offer tailored to the property's completion timeline becomes crucial. To ensure a smooth experience, especially when facing the challenge of a 6 month offer potentially timing out, enlisting the expertise of a knowledgeable broker like John Charcol familiar with this dynamic market proves invaluable, guaranteeing a seamless and issue-free purchase journey."

- Mortgage Technical Manager Nick Mendes, CeMAP qualified

New Build Mortgages: Frequently Asked Questions

Can I Get Help to Buy for a New Build Property as a First-Time Buyer?

The Help to Buy: Equity Loan was a government scheme that supported first-time buyers who wanted to get on the property ladder and purchase a new build home. This scheme is no longer available as the application deadline closed in October 2022.

Why is my mortgage provider valuing the property at less than the asking price?

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.

The developer wants me to use their in-house mortgage specialist. Is this a good idea?

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. 

Is there a fast-track service so that I can secure the property I have my eye on now?

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 property, we’ll do everything we can to make that happen.

Can I speak to someone with the authority to make decisions based on my real circumstances rather than computer-set limitations?

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.

Why choose John Charcol as your new-build mortgage adviser?

Home Insurance

We’re partners with Legal and General, so we can find you buildings and contents insurance for your new property. 

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It's important to protect yourself against the unforeseen. Our in-house team can organise mortgage protection that's tailored to suit your unique needs.

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JC Legal

We have access to a select panel of trusted conveyancers and solicitors so, not only do we organise your mortgage, we can refer you to a trusted solicitor for the conveyancing part of the process.

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We can help you prepare your property for tenants with our exclusive Concierge Service - available through our partners Just Move In. They’ll arrange all the removals and can help you set up things like Council Tax.

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