A guide to New Build Mortgages
Whether you are a first time buyer or a home mover, Just Mortgages is dedicated to helping you purchase your new build home. Your Just Mortgages Adviser will assist you throughout the home buying process to ensure you receive the right guidance and advice.
We have a Specialist New Build Mortgages Team
All Just Mortgages Advisers are professionally qualified. In addition to this our New Build Mortgage Specialists receive bespoke training on the New Build process before offering any advice on purchases. All our advisers are locally based and we are happy to meet you at your home or on your New Build development, whichever is most convenient for you.
Our New Build team is available 7 days a week. This means that you can call us any time to discuss your mortgage or any other matter relating to your purchase.
We will ensure both you and the developer are updated every step of the way from reservation to moving day.
Help to Buy Scheme
This scheme allows you to buy a New Build property with an equity loan from the government under the Help to Buy:Equity Loan. The equity loan is a maximum of 20% of the property value (to a maximum property value of £600,000) with a minimum personal deposit of 5%. We will guide you through the process and tell you if you qualify and how much you can afford to purchase at under this scheme. We will then recommend the most suitable lender and mortgage product for you from our panel of lenders that support the Help to Buy scheme.
For the first five years after purchase there are no loan fees on the Help to Buy: Equity Loan, but if you sell you do have to repay the loan percentage at the price at which the property sells for example, if a property sold for £210,000, you’d get £168,000 (80%), from your mortgage and the cash deposit and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.
To reflect the current property prices in London, the Government gives home-buyers within Greater
London from 20% to 40%.
As well as the Help to Buy scheme there are other ways of buying your New Build home if you have a small deposit. If your deposit is 10% or less some lenders will place a restriction on what deals they will offer you to help you purchase your New Build home. Just Mortgages are New Build specialists. We have access to some exclusive mortgage products which may not be available through other advisers.
What happens next?
- Take advice FIRST, from a specialist like Just Mortgages. There is no point setting your heart on something your pocket can not afford.
- After taking advice and knowing your affordability, choose and reserve the property that suits you. The New Build site office will help you.
- Make an appointment with your Just Mortgage Specialist to arrange your mortgage as soon as possible. Developers normally require you to exchange within 28 days of reservation date.
- You will need to instruct a solicitor and will be required to pay some fees upfront. Your solicitor should be familiar with the New Build purchase process. We can recommend a solicitor for you.
- Once the solicitor has received your mortgage offer from the lender and completed the necessary searches you will exchange contracts with the developer on your chosen property.
- You will soon be ready to move into your new home. Depending on the build schedule the developer may give you an estimated date. It is important to liaise closely with the developer and your solicitors on finalising this date.
Our Mortgage Administration Centre provides you further support too. We appoint a dedicated person to support you and your mortgage application, from start to finish. This enables us to keep close control over your mortgage applications, ensuring your exchange deadline is met.
We understand that your personal circumstances and financial requirements may change over time, so our Just Mortgages Client Services Team will stay in contact to provide continuous support for as long as you need us.