New Build Mortgages

A New Build Mortgage is a type of mortgage designed specifically for people buying a newly constructed property. New build mortgages may have different requirements and lending criteria compared to traditional mortgages, as the property is yet to be built or may be still under construction. Typically, lenders may release the funds in stages, known as stage payments, as the property is built, to ensure that the mortgage is only for the value of the property at each stage.

This means that the borrower will typically need a larger deposit upfront than with a traditional mortgage. New build mortgages may also offer incentives such as cashback, free legal fees, or assistance with moving costs. As with any mortgage, it is important to compare different options and seek professional financial advice before choosing a new build mortgage to ensure it is the right option for your individual circumstances.

Additionally, it is important to consider potential issues such as delays in construction and the possibility of snagging, which are defects in the property that need to be addressed.