New Build Mortgages
Owning a brand new, new build home is certainly appealing to many homebuyers. But with the current financial climate, buying a new house is way above the budgets of many. A new range of mortgage option aimed specifically at prospective clients wanting to buy new build properties is available like the New Build Mortgage.
There are a variety of options to finance for new build houses. If the property is suitable security for a mortgage, then lenders may be interested. If developers will offer discounts, then the easier will it be for lenders.
New Build Mortgage Options
New Build Mortgages helps people acquire property they cannot normally afford on the open market. This works by buying a share of the property - 25% to 75%, by way of mortgage or savings. You then pay a mortgage on the part you own, and you pay the lender a subsidized rent on the share the lender owns.
Basically, this type of loan can be personalized to the needs of the client. New build exclusives such as builder incentives can be considered too.
Who is Eligible for New Build Mortgage?
Only those who do not presently own a property and those who are current shared owners of a property may be eligible to apply for New Build Mortgage. All other homeowners are not eligible.
Priority is given to public sector tenants, key workers, people who live or work in the area and those nominated by the Local Authority.
New Build Mortgage can also be applied jointly provided that the joint income and savings do not enable you to buy a home outright. Also, at least one of you meets the eligibility requirements.
Things to Consider in New Build Mortgage
If you own the property outright without having it mortgaged, you can actually sell your home anytime without restriction. Your lease will specify restrictions, if any.
If you are part of a shared ownership, what happens depends on your lease. If the terms of your lease include a period during which the lenders have the right to market the property to others who qualify for New Build Mortgage or even reserving the lender’s right to buy back the property at full market value, then any of this options can be done.
Regarding repairs, you are responsible for all repairs to your home no matter what share you own.
Payment Options in New Build Mortgage
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A two-year fixed-rate mortgage available solely to purchase new build properties offers a mortgage rate of 4.69%. The completion deadline for this type of mortgage is 12 months. Loan amount can be valued at a maximum of 90%.
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An exclusive tracker mortgage for some customers also offers a mortgage rate of 4.69%. Similar with fixed rate mortgage the loan amount can be a maximum of 90%.
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A ten-year fixed-rate mortgage is also offered for those who want a longer repayment term with a mortgage rate of 4.99%. This option protects the client from future interest rate increases.
