When looking at new build properties and developments, especially apartments (or flats) you’d be surprised to learn that it isn’t always straightforward in terms of getting a mortgage.
New build apartments can present many challenges when it comes to applying for a mortgage.
But why, especially when the government offer help through the ‘Help to Buy Scheme’?
More often than not you’ll probably be buying off plan when it comes to a new build. This can pose several problems for lenders.
Firstly, when buying off plan the developers set their prices and this can be at a premium. Lender’s always value properties on any mortgage application, it’s common for them to undervalue the price that the developers have set for the apartment when it’s finished.
In turn, lenders will look to minimise their risk by requiring a larger deposit, often 15% or higher.
A further challenge is the timing of the mortgage.
If you’re buying an off-plan apartment the potential is that your property completion dates could be moved. This poses problems for mortgage offers you may have as they are valid for a limited amount of time e.g. 6 months.
However, utilising the expertise of a mortgage advisor or broker can help your chances of a mortgage for your new build apartment.
Having a mortgage advisor or broker can:
- Help you secure a new build mortgage based on your circumstances.
- Time the mortgage offer so that it’s more likely to be valid when your apartment is completed and ready for occupancy.
- Approach lenders to suit individual needs from whole of market. This means finding one that will also suit your valuation needs.
- Help with any ‘Help to Buy’ options.
Contact us and we’ll connect you with an experienced advisor who can help get that new build apartment you want.