Buying a New Build Property

Thinking of buying a new build property?

Congratulations! A new build house offers a blank canvas to create your dream home, often with modern features and potentially lower maintenance costs.  However, securing the right mortgage for a new build property can have different considerations compared to existing properties.  At Allegro Mortgages, we can guide you through the process and help you find the best possible new build mortgage product.

 

Buying a new build home will offer many advantages over a second-hand property, benefit such as being energy efficient, reducing running costs due to the superior insulation provided, quality of windows and build quality.  With a new property you’ll have peace of mind as they come with warranties which usually cover for 10 years. 

Buying from a developer will often give you access to many different schemes to assist with your purchase too.  Some of the most popular schemes are:-

Part-Exchange – the developer simultaneously buys your property, allowing you to purchase their property without any hassle of trying to time transaction

Assisted move – the developer will aid will selling your property using their recommended panel of estate agents and usually cover the cost of this too which saves you time and money

Deposit Unlock – a new-build exclusive scheme that gives you to access to more lenders with just a 5% deposit from you

Own New Rate Reducer – another new build exclusive scheme giving you access to market leading mortgage product rates from participating lenders!

Builder Gifted Deposits – a 5% gifted deposit from the developer/builder added to your own 5% deposit (making a total of 10% deposit) could give you access to more lender options and mortgage products with lower rates and fees.

 

What are New Build Mortgages?

New build mortgages are designed specifically for financing the purchase of a newly constructed property, usually purchased “off-plan” from the developer.  These mortgages may come with different features and eligibility criteria compared to standard mortgages.  An example of this is the deposit level requirements for a new build property often differ to that of a non-new build property purchase.

When buying a new build property, there are even lenders that offer products called “green mortgages” which benefit you with a potentially lower rate or a cash back incentive from the lender, due to the energy performance rating of the property, as lenders are targeted to lend on energy efficient properties, which of course new build properties are.

 

Key Considerations for New Build Mortgages:

 

• Incentives: Some developers may offer incentives for new build properties, such as cashback schemes or help with deposits. Not all incentive values are accepted by lenders as they can be capped at certain LTV thresholds, Allegro Mortgages can assist in this area. 
• Valuation process: Newly built properties are typically valued on an “off-plan” basis assessing the price per square-foot of the property once fully constructed.
• Deposit – Depending on the deposit you have available; will impact the lender you can use. For instance, a 5% deposit may limit the lenders available to you; however, a 10% deposit will open the door to many more options including potentially lower product rates.
• Timescales – When purchasing a new build, the developer usually requires a 4-to-6-week exchange deadline. This can seem quite daunting, however using a new build mortgage specialist will guide you through this process. 
• Validity of Mortgage offer –  A new build home is generally purchased ‘Off Plan’, so it may be several months before your new home is ready for occupation.  We will ensure that we recommend the most appropriate lender that will provide a mortgage offer valid for your expected completion timescales.

 

Benefits of Using Allegro Mortgages for your New Build Mortgage:

• Expert New Build Brokers – here at Allegro, we predominantly deal with new build mortgages, meaning we are in the know with latest schemes and understanding the minefield of information. 

• Wide range of lenders: We have access to a comprehensive range of lenders offering new build mortgages.
• Smooth process: We will guide you through every step of the application process.
• Escalations and relationships – The Allegro team continue to build the very important relationships with the lenders Business Development Managers, meaning when we need a quick response, escalations of a case and direct contact with the underwriters, we have it. 

 

Getting Started with Your New Build Mortgage

 

We understand that buying a new build property can be an exciting yet complex process.  At Allegro Mortgages, we are here to help!

 

• Contact us today for a free, no-obligation consultation.
• Our advisors will discuss your specific requirements and financial situation.
• We will search the market to find the most suitable new-build mortgage for you.
• We will guide you through the application process and ensure a smooth experience.
• We can assist in structuring incentive deals with the developer if they are being offered – to benefit you. 

 

Don’t let securing a mortgage for your dream new build property add stress to the process.  Contact Allegro Mortgages today and let us help you navigate the path to your new home!