Buying a New Build home can be an exciting time but with so many mortgages to choose from and New Build specific factors such as 28 days exchange of contracts, developer incentives and Help to Buy shared equity assistance to consider its vital that you get impartial advice.
At Asset Mortgage Solutions
Whole of market mortgage advice including exclusives not available in the High Street.
Our professionally fully qualified advisors offer face to face appointments at a time and place to suit you. No call centres or disjointed processes. The same advisors you initially speak to will provide the advice and assistance all the way to completion and moving into your new home.
Unlike brokers who use Call Centres our advisors are available seven days a week with no office hours. They are available when it is convenient for you.
We will explain the process for government schemes such as HELP TO BUY and also advise how incentives may affect your lender choice.
What is a new build mortgage?
A new build mortgage is designed specifically for purchasing newly constructed or off-plan properties. These mortgages include unique features to accommodate construction timelines and developer requirements, making them different from standard home loans.
Extended mortgage offer periods
Your mortgage offer is typically valid for longer than standard mortgages, giving you peace of mind if construction takes longer than planned.
Special deposit options
Access lower deposit requirements and exclusive deposit schemes designed specifically for new build purchases.
Built-in protection
Benefit from comprehensive protection through builder’s warranties and guarantees, which lenders take into account when approving your mortgage.
Competitive rates
Take advantage of exclusive new build mortgage rates, often featuring special deals arranged between developers and lenders.
Government scheme eligibility
Access various government-backed schemes designed to help you buy a new build property, potentially reducing your deposit or monthly payments.
Off-plan purchasing power
Secure your mortgage before your home is built, allowing you to reserve your dream property at today’s prices.
Eligibility criteria
Basic requirements
- Minimum 5-15% deposit (varies by lender)
- Good credit history
- Proof of regular income
- Affordability assessment showing ability to make monthly payments
- Maximum age requirements at end of mortgage term
Documentation needed
- Proof of ID and address
- Last 3 months’ payslips
- Last 3 months’ bank statements
- P60 form
- Proof of deposit
- Current utility bills
- Reservation agreement from the developer
Types of new build mortgages
Fixed-rate mortgages: secure a guaranteed interest rate for 2-5 years, providing payment stability and protection against interest rate rises.
Variable-rate mortgages: interest rates that can change based on market conditions, potentially offering lower initial rates but with less payment certainty.
Help to Buy schemes: government-backed initiatives allowing purchases with smaller deposits, including First Homes scheme offering 30-50% discounts to eligible first-time buyers.
Step-by-step application process
Pre-approval
- Initial consultation and affordability check
- Agreement in principle from lender
- Property reservation with developer
Application
- Full mortgage application submission
- Property valuation
- Document verification
- Underwriting process
Approval and closing
- Formal mortgage offer
- Exchange of contracts
- Construction completion
- Final inspection
- Completion and key handover
