Get Set: Leading New Build Mortgage Brokers

In simple terms, a new build mortgage is a long-term, high-value loan used to purchase a new property. This mortgage type may be offered privately by lenders, or to specific buyer groups through schemes such as ‘Help to Buy’.

New build mortgages are generally subject to strict requirements because lenders are wary of the risk of property value falling post-purchase (as a result of the home no longer being ‘new)’. Of course, this doesn’t always happen, but your mortgage provider will most likely take steps to protect their interests – just in case.  Involving a specialist new build mortgage broker can assist in ensuring you make the best possible choices, put forward a great application, and are protected and informed for the duration of your deal.

New build mortgages tend to be subject to relatively strict requirements, which may make it harder to secure one. These restrictions are a result of a number of factors, including the risk of property value depreciation post-purchase (as a result of the home no longer being ‘new)’, and the added uncertainty of buying off-plan if relevant. You may need to save a larger deposit than a regular mortgage (or top it up using a scheme if applicable), meet extra affordability requirements, or provide extra plans and evidence with regard to an off-plan build.

Involving a specialist new build mortgage broker can make securing your new build mortgage significantly easier. The right broker will be able to guide you through the available options on the market, finding the most suitable for your exact circumstances before compiling and submitting a strong application on your behalf.

The exact amount you’ll be able to borrow for your new build property depends on your lender and individual circumstances. Generally, you’ll need to save a larger deposit than required for an average mortgage in order to secure a new build as a result of stricter lending requirements imposed on this property type. Lenders tend to set a lower maximum LTV ratio on new build mortgages in order to cushion potential dips in value, meaning you may need to be prepared to put down a significant upfront payment of between (though if you’re a first-time buyer, you may be able to seek financial assistance at this stage through a new build scheme such as Help to Buy or seek a shared equity mortgage).

There’s no single ‘best’ new build mortgage lender out there – although there are some providers offering better deals than others. The best way to ensure you find the right deal for your circumstances is to consult a reputable, whole of market broker able to offer a view of each available lender and deal within your requirements. A broker may also be able to provide access to specialist new build mortgages otherwise unavailable to the public and will be able to advise on which available options are most suited to you.

If you need assistance finding or applying for a new build mortgage, or just aren’t sure where to start, the Fees Free Mortgage team can help. Contact us to arrange a free mortgage advice session or new build consultation at no extra cost using the form above, or visit us in branch.

Unfortunately, there aren’t a huge number of lenders offering mortgages with an LTV of above 90% on new build properties. This is because new build properties have no history, can be subject to equity fluctuations, and can face complications when built off-plan – making them a bigger risk to lend against. Luckily, there are multiple options available for those looking to purchase a new build with a smaller deposit – and Fees Free Mortgages have access to them!

A reputable mortgage lender should be able to source and analyse all available 90% mortgages or high LTV mortgages suited to your circumstances. Otherwise, there are a number of schemes available to aid buyers in the purchase of new builds. If you fall into an applicable category such as first-time buyers, our experts highly recommend looking into schemes such as ‘Help to Buy’, and the 95% mortgage guarantee, alongside shared ownership mortgages.

Looking to purchase a new build but unable to save up the huge deposits required by lenders? A 95% LTV mortgage could be the option for you. 

95% mortgages have been increasing in availability since the start of the pandemic, and are now offered by a number of providers, including new build developers. With a 95% mortgage, you’ll be required to put down just 5% as a deposit, whilst borrowing the remaining 95% as a mortgage – helping you get on the property ladder sooner rather than later.

Whilst you don’t necessarily need to involve a broker in your mortgaging process, their expert advice can be the difference between approval and rejection. This is particularly true for new build mortgage applications – which often face additional challenges, particularly where buying off-plan is concerned. 

If you need assistance finding or applying for a new build mortgage, or just aren’t sure where to start, the Fees Free Mortgage team can help. Contact us to arrange a free mortgage advice session or new build consultation at no extra cost using the form above, or visit us in branch.

Individual mortgage lenders and providers tend to have their own exact definitions of what a new build home is – so it’s best to study requirements on a case-by-case basis. With this being said, the most common criteria include:

• The property must be newly built. Time period and exact definitions for this vary from lender to lender – e.g. some lenders consider any property under 2 years old a new build regardless of whether it has already been sold or lived in, whilst others require the property to have been unsold. 

A property that has undergone substantial renovations or refurbishment may also qualify depending on its completion timeframe, and whether or not it was sold during this period. 

If the property hasn’t been built yet, it’ll be labelled ‘off-plan’. It is possible to get a mortgage for a new build of this kind but may be more complex.

Whether or not a new build home is the right option for you ultimately comes down to your individual preferences and circumstances. On the whole, newer developments are typically more modern, reliable, and energy-efficient than their older counterparts, but can suffer from snagging issues and may experience fluctuations in equity post-sale.  

With this being said, one of the primary draws to new build homes for many buyers is the financial assistance schemes to which they’re attached. Many options such as the help to buy scheme, and some 95% mortgage and shared ownership offerings are available on new builds only – making them a strong option for first-time buyers and those otherwise struggling to save up a significant deposit.

The new build vs old house debate has heated up in recent years – but we don’t like to pick sides. Each option comes with its own pros and cons;        

• Helping Hands

For many first time buyers, a new build is the best path to purchasing. With most government schemes and incentives for those looking to make their first step onto the housing ladder only available on newly constructed properties, a brand new home or off-plan agreement could mean the difference between affordability and being priced out by high traditional deposits. 

• Extras ‘On the House’ 

Developers are often more than willing to throw in a few extras to sweeten the deal – from stamp duty and legal fee payments to free white goods or carpets. 

• No Chain

If you’re buying an off-plan or recently constructed property, you can take joy in knowing that your brand new home will be all yours, immediately after approval. The lack of an upward or downward chain means buyers don’t have to wait for sales to complete on other properties – minimising otherwise looming stress and lead times.

• Reduced Bills and Maintenance

New build homes’ high levels of insulation and modern building techniques can ultimately end up making significant savings on bills and maintenance costs compared to older properties.