If we are honest, we have all driven by a builders show home before and been intrigued by what they have to offer, even gone in for a nose. I will be honest, I have done this even when I wasn’t house hunting. They are great for inspiration. Harder to do in more recent Covid times however as times get back to normal, but this will become a hobby again for many.
For some, it then becomes a reality as they reserve a new home – sometimes reserving their new house before the foundations are even laid. Lets face it, there are many advantages to buying a new build – especially if you can choose all the fixtures and fittings. The kitchen, the tiles, the flooring. However, getting a mortgage can sometimes be a bit trickier.
As first time buyers you have access to the government Help to Buy Scheme (HTB)
The HTB scheme is no longer available to home movers/next time buyers. This can be where a Mortgage gets complicated. A lender may allow you to borrow certain amounts, but HTB has its own rules and calculations, and these differ by area. This is where using a broker will really add value. That broker does not have to be the builders broker – they will always have ones they work with, for referral commission and control/speed of the transaction but you have the choice to work with whichever broker you trust. We can work efficiently and fast too. Sometimes even faster.
Having been someone who liked to move a little too regular for my parents liking (Dad was always my removals!) I have experience in buying a number of new builds. With the most recent being September last year (2021). Between personal experience and professional experience, I like to think I know a thing or two.
One of the complications with buying a new build is the builder will usually want you to exchange within 28 days which means committing to the purchase – and if moving, often committing to the sale of yours. Meaning moving to rented or even to friends/family. This can be even 12 months before the build is complete. With most mortgage offers valid for 6 months as standard it is important to get the right advice in this area. Some lenders have an easy extension process, for some it’s a whole new application!
That said – a new build is hugely exciting
Fresh paint, your own choice of tiles, carpets etc. On that note, this can become costly. However developers will often try and do a deal, and give you some money towards these. Again this is key to get right as not all lenders will accept incentives. CML reports and reservation forms need to be correct, accurate and fit lenders criteria.
So many reasons why using a broker is important, especially with a new build. I have a home account on Instagram and one of the biggest stresses for people ahead of moving is the Mortgage, Mortgage offer extensions, and getting the offer in the first place.
The process is worth it.
One tip I always tell my clients, a sparkly new home is amazing. There WILL be snags, the house is manmade and until someone lives in it, not everything gets picked up. Work with your builder and they will put it right. You are covered by NHBC cover too. We are here as brokers for that emotional support and guidance on the process as much as we are the Mortgage.
For any questions you have, feel free to contact me, I would be happy to help.
Megan Kearney – Mortgage & Protection Adviser
Megan@mortgage1st.co.uk – 07971 678594