New Build Mortgages with a Pre-Approval in 30 minutes

It can seem harder to get a mortgage for new build properties. Mortgage lenders can be strict on how much they’re willing to lend against new builds, to protect themselves from any potential devaluation of the property in the early years.

If you’re considering buying a new build, speak to a mortgage broker like ourselves. We can work out how much you can afford and what it will cost – and we’ll also see if you’re eligible for any home-buying scheme.



If you’re buying a new build property you need a mortgage that can potentially withstand a long delay between the potential exchange and completion date. A lender who will offer you extensions on your mortgage offer is really helpful. Otherwise, you run the risk of the mortgage offer running out before the home is ready.

First, check that you’re eligible for a mortgage and how much money you can borrow. It’s good to have a mortgage Pre-Approval at the outset. That way you know there are no hidden credit issues or anything that could cause a problem. You don’t want to start looking for a house, put a deposit down and then find that you can’t borrow the money. We can get you a pre-approval within 30 minutes of receiving the relevant documents from you.

Once you’ve found a property you can negotiate the price and any incentives with the builder. It’s worth checking back with the mortgage broker to make sure you can afford the final price before you go ahead. Once your booking fee is paid your mortgage broker will start looking for the most suitable mortgage for you.



Next we help you with the full application and you supply documentation such as proof of income and ID. Your brokers should also be able to help you appoint solicitors to conduct the legal work as part of your new build purchase. Lastly, once the lender has issued a mortgage offer you’ll be ready to exchange, pay your deposit and agree a completion date.

It’s not much different to a normal mortgage application. You would expect to receive a mortgage offer usually within two-four weeks of the application. That’s dependent on a couple of factors – when the valuation can be carried out by the lender and whether it’s a complicated application. A big one at the moment, too, is how busy the mortgage lenders are – that can affect how quickly they can turn around applications and assess documentation.

There are a lot of developers that will offer incentives to tempt buyers in. They may cover your stamp duty or legal fees. But lenders will take this into account in considering how much to lend you. It could reduce the amount you can borrow if the incentive is worth a significant amount – for example, if it’s more than 5% of the value of the property.



This could affect the mortgage rates and the Loan to Value – how much you’re borrowing in relation to how much the property is worth. We’ll be able to advise on any potential impact of buyer incentives on your mortgage before you go ahead.

This is a scheme devised in collaboration with lenders and the house building industry. It enables First Time Buyers and existing homeowners to purchase a new build home with just 5% deposit. It also provides customers with competitively priced mortgage products up to £750,000 and makes buying a home a bit more affordable.

The scheme is exclusively available on selected new build homes. It’s definitely something that buyers can look into as an option.

What is Co-Ownership and how does it work?

It’s really important that you take time to understand this and what it means. This is called an Equity Sharing Lease and it is the agreement between you and Co-Ownership. It outlines what you can expect from Co-Ownership and what Co-Ownership expects from you.

• Co-Ownership buys a share of your chosen property which you pay rent on. You pay your mortgage lender a monthly repayment for your share of the property. If you miss payments on either your rent or your mortgage your home could be at risk of repossession.

• The shared ownership arrangement means that when you sell or buy a greater share of your home you and Co-Ownership both benefit from the value going up or share in the loss if the value goes down. You share the risk.

• You are expected to maintain your home to at least the standard that it was when you bought it. When you buy a bigger share of your home it will be valued based on it being maintained to this standard.

• It’s your home so put your own stamp on it. You only need to contact us if you are thinking of making a structural change such as building a garage or an extension.

• If you are changing your lender or are making changes to your mortgage, please let us know.

• Co-Ownership is a not for profit organisation and a registered housing association and charity which means the proceeds received from the sale of your home will be recycled to help other people achieve home ownership.

• We hope that you will be able to buy Co-Ownership’s share of your home as soon as you are able. When house prices are rising doing this will reduce the amount owing to Co-Ownership and the amount of rent you will have to pay. 

As the name suggests, it allows multiple borrowers to contribute to repaying a mortgage, but not all names will be on the property deeds. To give you an example, I’m currently helping a First Time Buyer who wouldn’t be able to afford the property he’s buying on his sole income.



Using this scheme, his mother has kindly agreed to put forward an income as part of the application. That’s allowed him to purchase a property which is big enough so that his son can come and stay. JBSP gives people a foot on the ladder that potentially they wouldn’t have had on their own.

New build properties really appeal to people because they’re brand new. They come with warranties, such as the NHBC or Global Homes 10 year certificate, which protects the buyer if there were any major defects in any of the building work.



Typically you can choose your own fixtures, fittings and finishes such as tiling and carpets. You can pick out your kitchen and bathroom. 

Another advantage is that you’re not involved in a chain when buying the property. As soon as the home is built you can move, which can take a lot of the stress out of the moving process.

Something which is very relevant at the moment is that new builds are typically more energy efficient than older properties, so you should save money on gas and electricity bills.

Talking to somebody like ourselves can take the risk away. It means you don’t have to worry about getting it wrong or trying to do things yourself.



Plus, we will hopefully save you some money by finding the most suitable deal and making it as cost effective as we can.

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



The Financial Conduct Authority does not regulate some Buy to Let Mortgages.