Lucra Mortgages will give you the expert advice you need to ensure that your new build purchase goes through smoothly, but there are a few things we think you should know up front:
- The majority of mortgage lenders need a bigger deposit for new build properties (especially if you’re buying a new build flat).
- If there are any incentives offered by the developer, this could affect the mortgage offered by the lender, as many lenders have restrictions in terms of the level of incentive allowed.
- If you buy off plan then you need to ensure your mortgage offer is valid for a long enough period. Or, if it’s not, you must have the ability to extend the mortgage offer in the event of any delays to the build process as well.
- New build purchases, more often than not need a quick turnaround from initially reserving the property up until exchange of contracts – often 28 days. So, speed of service in the mortgage transaction is vital.
- For new build flats that have been converted, some lenders can’t offer mortgages for office conversions.
- For smaller independent builders, we have detailed knowledge on what new build warranties are accepted by which lenders to ensure there are no hiccups along the way.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is £549.