Mortgages On New Build Properties

With the Government funding various incentives for buying new build properties, lots of prospective buyers are looking to these kind of properties to make their homes; especially first time buyers. Finding a mortgage for a new build property can sometimes be a little trickier than if you were buying an older property but the mortgages that are out there often require a smaller deposit due to the various Help To Buy schemes currently available.

It can be a bit confusing but you don’t have to tackle the project alone – let TaylorMade find you the best deal on your new build property.

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Everything you
need to know…

Upfront Fees

Whether your new build property has been built or not, developers will often ask for a reservation fee to be put in place to secure your plot. This is non-refundable so if you decide against buying the property, or your mortgage application doesn’t complete in time or falls through, you will lose this fee.

Timescales

Time is often a factor when looking to buy a new build property. If your home has already been built, there’s usually a 28 day period to exchange legal contracts and to have a mortgage in place. With the usual mortgage application taking between 2-4 weeks it is essential to factor this in.

On the other hand, if you’re buying a plot that has yet to be built, you often don’t have to submit your full deposit until the property is near completion. This gives you time to continue saving for a bigger deposit which would significantly reduce your monthly repayments.

With a wealth of different incentives and schemes geared towards new build properties and first time buyers coming into effect, it can be a little overwhelming trying to figure out the best option to take.

If you’d like to get some expert advice on new build properties and the types of mortgages that would be most suitable; as well as up to the minute knowledge of all the latest government schemes available, contact one of our advisers at TaylorMade.

To ensure you get the best deal on the market, let TaylorMade give you a helping hand.

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Mortgage
types

Fixed rate

A fixed rate mortgage charges a set rate of interest for a predetermined period. Once this period is over, the interest rate usually revers to the lender’s Standard Variable Rate (SVR).

Tracker

Trackers are a type of variable rate mortgage which see interest rates rising and falling based on the Bank of England’s base rate. However, unlike traditional variable rate mortgages, a tracker mortgage doesn’t have to match the Bank of England’s rate exactly. Instead, the rate the borrower is charged is likely to be a little above the base rate.

Offset

An offset mortgage links the borrower’s savings to their mortgage balance. By choosing an offset mortgage, homeowners can reduce the amount of interest charged and potentially pay off the mortgage sooner.

Cashback

A cashback mortgage pays the borrower an upfront lump sum. This can enable them to pay for a costly expense such as home furnishings, a car or university tuition fees. The rate paid tends to be based on the bank's Standard Variable Rate (SVR).

Discount rate

A discount rate mortgage offers borrowers a reduction on the lender’s Standard Variable Rate (SVR) for a set period of time. The rate can fluctuate and so although the borrower will repay less than the SVR, their repayments could rise or fall.

Variable rate

A variable rate mortgage sees the interest owed rise or fall depending on the base rates set by the bank. When the base rate is low, borrowers may benefit from extremely low mortgage repayments. However, if the base rate increases, so too will the amount borrowers are expected to pay in interest.

Interest only

When a homeowner has an interest only mortgage, they won’t pay traditional mortgage payments each month. Instead, they’ll only repay the interest that is due. At the end of the mortgage term, the homeowner will be expected to pay the property’s value in full.

Capped rate

A capped rate mortgage offers similar security to a fixed rate mortgage. The rate payable will be capped for the duration of an agreed upon period of time. During this time, the rate may rise or fall in line with market fluctuations, but it will never exceed the capped rate.

As a result, a capped rate mortgage enables borrowers to benefit from falling rates without placing strain on their budget as a result of unaffordable increases.

Why choose
us?

We compare over 70 lenders

We compare over 70 lenders to ensure you get the very best mortgage deal suited to your lifestyle. We’ve been around for a long time and we know the mortgage providers inside out.

WITH YOU EVERY STEP OF THE WAY

We offer a personal concierge service so you will meet us face to face. Our expert mortgage advisors will provide you with all the information you need to make an informed decision.

There are no hidden fees

You will never pay more than 1.95% of the mortgage balance. Our average fee is 1% and the minimum fee you will pay is £1295.

We make it quick and easy

We can get you a mortgage in as little as two weeks. We’ll help you fill out all of the forms and will never put you forward for anything you are not likely to be accepted for.

Don't just take our word for it

We have a wealth of happy customers who can’t help but shout about our excellent services.

Talk to us

If you're unsure and need some advice just give us a call, our expert team of advisers are available to help you choose the mortgage that is right for you.

0345 305 2540 info@taylormade-finance.co.uk

By clicking on the above link you will be leaving the regulated site of TaylorMade Finance Ltd. TaylorMade Finance Ltd is not responsible for the accuracy of the information contained within the linked site.

TaylorMade Finance Ltd is authorised and regulated by the Financial Conduct Authority.

Where you have a complaint or dispute with us and we are unable to resolve this to your satisfaction then we are obliged to offer you the Financial Ombudsman Service to help resolve this. Please see the following link for further details: http://financial-ombudsman.org.uk

Your mortgage will be secured against your property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1.95% of the mortgage amount, subject to a minimum fee of £1,295 and an overall maximum fee of £2,995 payable on completion.

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