New Build Mortgages
As a general rule new build properties will be more expensive than older properties. This is because you will be the first person to live there. However, they also tend to go down in value as soon as you have purchased them. Just like a car that you have bought from a dealership. The minute it is drive off the forecourt it goes down in value as it is no longer brand new. The same goes for new build houses. Because of this lenders normally expect a greater deposit to be placed down by the borrower. Lenders also often have different rates for new builds which are sometimes higher. This is because there is a greater risk that the value of a new build property may fall within the first few years so lenders are looking to cover themselves against this should a property ever need to be repossessed.
Many people like the idea of buying a new build ‘off plan’ (before the property has been built). When you by a property this like you can often get the developer to fit the property out to your own specifications. However, it is important to note that your mortgage offer is usually only valid for up to a period of six months so if the building work takes longer than this timeframe, you will likely need to reapply and the rates may well be different.
For further help and advice about new build mortgages do not hesitate to contact us and speak to an expert.