Finding your new build home mortgage

Whether you’re a first-time buyer or a seasoned homemover, securing a mortgage can feel like the most overwhelming part of buying a home. The mortgage world is full of rates, rules, and requirements.  So you’re not alone if you’ve ever asked, “how do I get a mortgage to buy a new build home?”

Whilst you may have already found your perfect zero carbon Newland home, one that’s built to look after your family, your finances, and the future, we’ve spoken to our expert mortgage partners to give you the inside scoop.

New build homes mortgages – affordability

The biggest challenge we see from prospective homebuyers is affordability. Ticking those boxes in terms of deposit requirements and passing strict lender affordability assessments, can be the stuff of nightmares. But there’s good news on the horizon.

The Financial Conduct Authority (FCA) has recently updated how lenders assess affordability. These changes have made it easier to borrow more, with typical mortgage offers increasing by around 13%. For many buyers, this means lenders may now offer a mortgage at 5.5 times, or even six times your income, instead of  four times, which means a significant boost for those stretching towards that dream home.

More lenders are now also offering Joint Borrower Sole Proprietor deals.   These are when the lender will allow a family member or friend to be added to your mortgage, even if they won’t be living with you, to help you borrow more.

Paying your rent proves you can pay a mortgage

It’s been a longstanding source of frustration that despite years of paying a mortgage, the computer often says ‘no’ when it comes to swapping that monthly sum, often the same or lower, to paying a mortgage.  Recognising this, lenders are now opening up to renters with no deposit who have proven track record with rental payments and with the Government looking to potentially change the rules for lenders on this, change is on the cards.  That’s a game-changer for many first-time buyers.

Crystal ball gazing to predict mortgage interest rates

Insiders say that the Bank of England Base Rate may be set to fall.  Additionally, inflation is expected to lower too as energy prices decrease.

Connected to this, lenders’ mortgage rates have been falling with rates now available below 4% for loans at 75% Loan To Value (LTV).  95% LTV rates now at around 4.7%, way below the heady yet recent days of 6% plus!  Also, it’s clear that the market is relaxing with more and more lenders are now lending at 95% LTV on New Build, including apartments.

And it’s still always a good move to get on the property ladder. Savills suggesting that house prices will continue rising, potentially up by 25% over the next 5 years! (source: https://www.savills.co.uk/research_articles/229130/379365-0)

Open up your options with a zero carbon, new build home mortgage

Did you know that there’s specific new build home mortgage products for energy efficient and zero carbon homes?  So, as well as saving money every month on energy bills you could be saving on your mortgage payments too.

Neil Alkins of the award-winning MAB New Homes told us: “With over 6,500 mortgage products available, there’s most likely one for every situation.  As specialist new build brokers, we’re able to match buyers with the mortgage that means they can achieve that showhome dream.

“The forecast is looking positive.  We’re seeing interest rates fall and high loan-to-value products available.  Plus banks are moving to narrow the affordability gap.  This has previously excluded many potential buyers, particularly those with modest incomes but strong repayment potential.”

If you are still looking for your perfect zero carbon home, take a look at our developments.  Get in touch to speak to our Sales Consultants to book your tailor-made appointment to view and benefit from free no obligation financial advice from our independent team of New Build Mortgage Specialists.

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