New Build Mortgage Referrals
New Build Mortgages
Step into Your Brand-New Dream Home.
Imagine stepping into the light-filled hallway of your brand-new dream home, the scent of fresh paint still in the air. It's a blank canvas, ready for your memories to be made.
At Goodniss, we understand that turning that dream into a reality requires the right financial foundation, and that's where connecting you to new build mortgage solutions comes in.
We're here to guide you through the exciting journey of purchasing a newly constructed property. We act as a referral service, connecting you with trusted mortgage advisors specialising in new build properties.
We understand the unique aspects of securing a mortgage for a brand-new home, and our network of experts can guide you through the process, ensuring you find the right financial solution to make your new build dreams a reality.
From navigating the initial offer to handling the final details, we aim to make the process smooth and straightforward, allowing you to focus on the joy of creating your future in your brand-new space.
Let Goodniss help you unlock the door to your dream home.
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If you are interested in becoming a client or you would like to learn more about our services, then we would be delighted to hear from you.
How long is my mortgage offer valid for?
Understanding Mortgage Offer Validity Periods for New Builds
A regulated mortgage adviser from our network can explain the nuances of mortgage offer validity periods for new build properties. They will clarify that:
Mortgage offers are generally valid for around six months, but the exact period will differ between providers.
If your new build property hasn't been completed before your mortgage offer expires, they can discuss options for an extension, which will depend on the specific lender.
Your adviser will warn you that if anything changes with your new build (like a change in value), the lender has the right to withdraw the offer. They will explain the potential complications if this happens when you're already committed to the purchase.
They can also help you navigate situations where an offer might not be extended, potentially requiring a new mortgage application.
Your adviser can highlight that some lenders offer longer validity periods specifically for new build properties (e.g., up to three months longer than their standard deadlines), which can provide greater peace of mind during construction.
What incentives are available?
Exploring New Build Developer Incentives
Your regulated mortgage adviser can discuss various incentives developers may offer to make new build properties more appealing, given the competition in the market. These incentives might include:
Payment of stamp duty or legal fees
Upgrades to the property (e.g., higher-spec kitchen, garden landscaping)
Furniture packages
A contribution towards the deposit
Cashback
Your adviser will also explain how mortgage lenders typically view these incentives.
They can clarify that while some incentives may be acceptable (e.g., up to about 5% of the property value), higher levels of incentive might be factored into the lender's calculations, potentially impacting the Loan-to-Value (LTV) percentage.
Are there any restrictions?
Understanding Lending Restrictions on New Build Mortgages
A regulated mortgage adviser can explain the specific lending criteria and potential restrictions associated with new build mortgages. They will clarify that:
Lenders may limit the maximum percentage of the purchase price they will lend, particularly for flats. However, your adviser can help you find lenders who are more accommodating for new houses and flats.
You may experience more restrictive criteria on the loan compared to purchasing an older home.
They will explain the concept of Loan-to-Value (LTV) and how a higher LTV can increase the risk for the mortgage provider. Your adviser will clarify why mortgage providers are often stricter on the percentage they offer for new builds, often to protect themselves from potential devaluation in the early years.
Is there any help available?
Government Schemes and Support for New Builds
A regulated mortgage adviser can advise you on various government schemes that could make buying a brand new home more affordable.
They can, for example, explain programs like the former Help to Buy scheme (if still relevant for current discussions, otherwise they can advise you on current schemes).
If discussing Help to Buy, your adviser would clarify that such schemes:
Could help you buy a new home with a smaller deposit (e.g., as little as 5%), typically requiring you to buy from a registered builder.
May involve an equity loan (e.g., up to 20% in England), which might come with no interest for an initial period (e.g., five years).
Will explain how the equity loan is typically repaid (e.g., the same percentage of the sale price when the property is sold, even if it's after the interest-free period).