That field you used to play on as a kid is more than likely a plot with new developments already full with families or is planned for new properties. It’s a sign of the times, where every available space is wanted for new houses – But can you afford them?
Lenders can use stricter limits on a maximum value of a property, using a loan for a mortgage to get that desired new-build home can be harder than a mortgage for an older property.
This means you might be restricted to borrowing 85% of the value of a house, or 75% on a flat, whereas an older property may come at a bigger percentage.
There are two parts of Help to Buy, an equity loan and a mortgage guarantee scheme. The equity loan scheme is only available for newly built homes.
You may find this new-build home step-by-step guide helpful:
Research your chosen area with an appropriate development, by viewing a show home or marketing suite. A developer’s track record and schools nearby (if you have or plan to have a young family) etc, should all be on your consideration list.
Speak with a trusted mortgage adviser about how to go about borrowing money for your property.
Pay a reservation fee if needed for your desired home. Judging a property before you’ve seen it can be quite hard to imagine how it will look in your mind, although with pictures you can get a rough idea of what it will look like to be living there.
You could employ a Conveyancer to deal with the legal purchase on your property..
Arrange the all important mortgage, your lender will have the property independently valued.
Exchange contracts and pay your deposit.
Before you move in, arrange to have a snagging survey to be conducted near completion so you can spot any defects and get them fixed promptly.
Be ready for when the developer expects to finish the work undertaken (the short stop date) and the date the home has to be completed on (the long stop date.)
New-builds became the new craze during the height of the property boom as easy mortgage credit drove developers to erect more. Despite a rise in property prices, potential buyers were happy to put down a deposit before homes were even built.
Hawkhurst offer a wide range of services within the property industry, if you are interested and would like to discuss something with us then please give our friendly team of experts a call on 0845 8948 441.
