95% New Build Mortgages

Mortgage Brokers for First Time Buyers

First Time Buyer Mortgages

Alex Kerr: Mortgage Broker for First Time Buyers

Mortgage Chain are Mortgage Broker for First Time Buyers and help many First Time Buyers with 95% New Build Mortgages.

I always tell my clients, remember New Builds = New Rules!


95% New Build Mortgages – As a Mortgage Broker for First Time Buyers, I have helped many First Time Buyers onto the property ladder. 95% New Build Mortgages are fantastic for First Time Buyers as you have builder incentives, the Help to Buy equity loan and shared ownership options available.

However it’s not as easy as assuming that all the High Street lenders will provide up to a 95% loan to value mortgage on a new build property.
Shared Ownership – A lot of High Street lenders will stipulate they lend up to 95% loan to value on shared ownership properties however that not always the case when buying new build properties where the majority of lenders will ask for either a 10% deposit for a house purchase or a 15% deposit for a flat or apartment. Just be 100% sure you’re applying to the correct mortgage lender and that who supports stair casing to 100%. This must be allowed; What that means is that the Housing Association must allow you to buy 100% of the share at a later date. This is very important as mortgage lenders criteria states that must be the case.
Three fantastic mortgage lenders when purchasing a shared ownership property include; Leeds building society, Newbury building society and Kent Reliance.
Mortgage Deposit – As I touched on earlier when you’re buying a new build property whether its help to buy or shared ownership, or if your’e buying a new build property outright a lot of High Street lenders will stipulate a 10% deposit for a house and a 15% deposit for a flat or apartment, if you are applying to a lot of High Street lenders. Just remember that criteria otherwise you’ll need to look at some building societies who are more likely to specialise in 95% mortgages.
Incentives – Incentives can be fantastic, however when you’re going to get an incentive from a builder, just be sure to double check the criteria of the lender because not all lenders will allow some types of incentives dependant on what it is. This could be towards the deposit, the stamp duty paid or even some vouchers for furniture, that sort of incentive, just double check the lenders criteria.
Help to Buy Scheme – The Help to Buy scheme is also applicable to new build properties and this can be fantastic whether you are in a situation where under normal circumstances with a 5% deposit or a 10% deposit you may not have been able to get the mortgage. The help to buy equity loan sometimes is the difference between bridging a gap. You may have a little bit of adverse credit, you may not pass the credit score with just a 5% or 10% deposit and the help to buy equity loan can make the difference.
Affordability – The last tip when buying new build property under the shared ownership scheme is the affordability must fit. A common mistake is to use the lender’s affordability calculators but not factor in the shared ownership, ground rent or service charge so make sure that’s being taken into account when you thinking about buying a new build.
Question of the day – Are you buying a New Build for your first home ?  Let me know in the comments.
so thanks for checking out today’s blog and if you’re new to the blog please subscribe and if you’re looking to buy a new build property and have some further questions please do get in touch, my email is [email protected] and my phone number 03333446869.
Until next time mortgage chain are bringing the best tools and tips to first time buyers, have a beautiful day will see in the next blog.

Speak soon

Alex Kerr
Mortgage Broker for First Time Buyers


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.