Residential Mortgages

Advice for buying your new build home

Securing a mortgage for your new build home can sometimes be more difficult than it is for an older property. In some cases lenders are only willing to provide a smaller percentage of the loan to value (LTV) of a property.  Timing your borrowing can also be a challenge if the home isn’t completed yet since most mortgage offers are only valid for six months.

New build properties are increasingly popular among buyers at the upper end because they’re turn key homes.  They have all the facilities and luxurious extras that these buyers demand.  There are also usually more secure – and this is particularly important to overseas buyers.

There are very specific criteria when it comes to borrowing for new build properties. Lenders take a different view of the risk because a build new property is not as familiar to them as for example a classic Victorian terrace. It’s not yet established its value on the open market. We work closely with banks and developers so we can help banks to understand exactly what their lending against.

Timing is of the essence with a new build property. A project can take months even years to get underway and then suddenly the buyer might be required to arrange their finance in a matter of weeks. Even then there might be a delay. Our close contacts with developers and lenders means that we can provide flexible financing that can take into account demanding, frequently changing timetables.

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