New Build Mortgages

New build homes often come with modern amenities and energy-efficient features, reducing maintenance costs and utility bills. They may also be covered by warranties, providing peace of mind to buyers. Additionally, new build properties typically adhere to the latest building regulations and safety standards.

Drawbacks of new build homes can include potential delays in construction, unfinished developments in the surrounding area, and the risk of snags or defects that may need addressing after purchase. New build properties may also be more expensive than existing homes, and there could be limited room for negotiation on price.

The timeline for getting a mortgage for a new build property can vary depending on factors such as the lender’s processes, your financial situation, and the completion stage of the property. On average, it can take anywhere from a few weeks to a couple of months to secure a mortgage for a new build.

A mortgage Agreement in Principle (AIP), also know as a Decision in Principle (DIP) is a preliminary decision from a lender indicating how much they might be willing to lend you based on your financial information. It gives an estimate of your borrowing capacity and helps demonstrate your seriousness to developers when purchasing a property.

Yes, you can typically use a gifted deposit for a new build mortgage. A gifted deposit is when someone, usually a family member, gives you money to use as part or all of your deposit for a property purchase. However, there are some considerations to keep in mind:

• Lender Acceptance: Not all mortgage lenders accept gifted deposits, so it’s essential to check with your chosen lender beforehand. Most lenders will require a letter from the person gifting the deposit confirming that the money does not need to be repaid and that they have no legal claim to the property.
• Anti-Money Laundering Checks: Lenders will usually conduct anti-money laundering checks on the gifted deposit to ensure that the funds are legitimate and not the result of illegal activities.
• Impact on Borrowing Capacity: While a gifted deposit can help you with your upfront costs, it doesn’t necessarily increase your borrowing capacity. Lenders will still assess your ability to afford the mortgage repayments based on your income, expenses, and creditworthiness.
• Gifted Deposit Rules: Some lenders may have specific rules regarding gifted deposits, such as the minimum amount that must come from your own savings or restrictions on the relationship between the donor and recipient.