New Build Mortgages - things to consider...

Posted on October 11, 2019

Any mortgage taken out on a newly built property (meaning usually within the last 12 months) that has not been owned and occupied by a previous owner, will be known as a new-build mortgage.

It may in some cases refer to a mortgage that is taken out before construction on the property has been fully completed, but this won’t always be the case.

It’s fair to say that getting a mortgage for a new build can occasionally take longer and be more complicated than taking one out on a more standard property, and you might have a more limited choice of lenders; for this reason it’s best to seek out an experienced mortgage broker to identify the best options for you.

Perhaps the biggest concern for mortgage providers is that these properties can be difficult to value; buyers are seen to be paying a ‘premium’ for a brand new home, which will usually drop when the property changes hands – but the exact amount of value it loses (if any) can be highly unpredictable.

You may be wondering – particularly if you’re a first-time-buyer – if you as an individual will qualify for a mortgage on new build property.

At Mortgage Solutions Belfast we do all the hard work for you.

To get an idea of your suitability as a borrower, we will consider several factors, but in particular:

  • How much you can afford to put down as a deposit
  • Your income (type and frequency, as well as the amount)
  • Your employment type, and how long you’ve been in this employment
  • Your credit history
  • Your age

Timing is crucial when it comes to new builds. A mortgage offer is typically valid for 6 months, but with a new build, you may find that the property is not completed and ready for you within that time-frame. We will be with you every step of the way to ensure complications are kept to a minimum, meaning when you move into your brand-new home the only thing you’ll have to worry about is where to put your new gin cabinet!

Reasons to buy a new build

1. Being the first

Many people like the fact that they will be the first person to live in the property. A new build home is fresh, bright and clean providing a blank canvas on which you can stamp your own style and personality from day one.

2. Location

Builders know that location is one of the most important considerations for buyers and are very careful about developing on land that is close to all the local amenities, such as schools, doctors, shopping facilities and transport terminals.

3. Exceptional specifications

New builds address modern trends, making them purpose built for today's market. They have exceptional specifications, meaning they'll still be at the height of convenience in a decade or so, compared with a Victorian building. Buyers can often select fixtures and fittings to tailor the property finish to their taste.

4. Minimal maintenance

New builds also come with certain guarantees so, if an issue arises, you'll be able to contact the developer to take care of it for a certain period of time. This provides peace of mind when purchasing a long-term asset. Examples of such guarantees are as follows:

  • National House Building Council (NHBC)
  • Local Authority Building Control (LABC)
  • Building LifePlans Ltd (BLP)
  • Premier Guarantee

5. Safe and secure

New build homes may offer increased security and safety, with many containing high specification alarms systems, as well as being designed with electrical and fire safety in mind. On site services such as concierge as give you piece of mind as to who enters the building.

6. Cost Effective

Today’s new build homes are built to the latest environmental standard and are cheaper to run. New builds are six times more energy efficient and generate 60% less carbon dioxide emissions than older homes. Therefore, not only are you helping the environment, you are also saving money.

6. Great Buy-To-Let Option

Many landlords prefer the minimal maintenance requirements of new builds of which many more opt for property management for total peace of mind. Services include, collecting rent, handling administration, as well as assistance with more complex issues and the provision of a 24-hour emergency service.

8. Incentives

Incentives such as the government’s Help-to-Buy equity loan scheme and Starter Homes Initiative are only available on new homes. Developers may also provide incentives such as furniture packs or paying your Stamp Duty Land Tax (SDLT) on your behalf.

9. Ease of purchase

There is no upward chain to contend with when you buy a new build home.

10. Is that the neighbours?

It’s a myth that all new homes are built with thin party walls and you can hear everything your neighbours are getting up to. Following the introduction of tough new industry standards in 2003 new homes are now built with materials and techniques to significantly reduce noise from adjoining properties.

If after reading all this you’re still interested in buying a new-build, come and see on of our Belfast mortgage advisors for a free consultation.

Mortgage Solutions Belfast – we make finding (new-build) mortgages easy!