You can get several types of mortgages to finance your new home. With a new homes mortgage broker at your side, you’ll learn the ins and outs of each of them and how they work for your specific situation.

• Fixed-Rate Mortgage:
  • This is the most common type of mortgage option. With it, you lock into a fixed rate that’s typically lower than the variable rate for a certain number of years. Our certified mortgage new home mortgage advisors, we can help you understand your options and select the right fixed-rate term for you. Fixed-rate terms tend to last either two, five, or ten years.
• Variable-Rate Mortgage:
  • The interest rate can change over time, often linked to a lender’s Standard Variable Rate (SVR) or another benchmark, making monthly payments fluctuate.
• Interest-Only Mortgage:
  • With this option, you only pay interest during the loan term and then need to pay off the principal at the end of the term. This option is usually ideal for investors but not those looking to buy their family home.
• Government-Backed Loans:
  • While the Help to Buy loan is over, government programs still help first time buyers specifically buy a new home. The one currently is the New Home scheme, which is only available through new housing developments. With this option, first time buyers can get a discount on the market price while still owning 100%. The discount must be passed on to another first time buyer when you sell.

Our new homes mortgage advisors will make sure you know your commitments entirely so you can choose the right program and mortgage for your circumstances every time.

• Get Pre-Approved: Before you start looking at new homes, it’s advisable to get pre-approved for a mortgage. This gives you an idea of how much you can borrow and makes you a more attractive buyer to developers or sellers.
• Choose the Right Mortgage: Based on your financial situation, decide whether a fixed, variable, or interest-only mortgage best suits your needs.
• Find a New Home: Work with developers, real estate agents, or directly with builders to find the new home that fits your criteria.
• Submit a Mortgage Application: Once you’ve chosen a property, you’ll need to submit a full mortgage application, including details about your income, debts, and the property itself.
• Valuation and Survey: The lender will typically conduct a valuation to ensure the home is worth the purchase price and check the property for any potential issues.
• Mortgage Offer: If approved, the lender will make a formal mortgage offer, detailing the terms of your loan.
• Completion: Once all legal work is done, the funds are transferred, and you become the official owner of the property, with mortgage payments starting as per the agreed schedule.

• Interest: The primary cost, determined by your mortgage’s interest rate.
• Deposit: The initial down payment made towards the property.
• Arrangement Fees: Some mortgages come with an upfront fee for arranging the loan.
• Valuation and Survey Fees: Covers the cost of the property valuation and any additional surveys.
• Legal Fees: You’ll need a solicitor or conveyancer to handle the legal aspects of purchasing the home.
• Stamp Duty: A tax paid on property purchases above a certain threshold, depending on the property price and local regulations.

There are many benefits of going for a new home and getting a new home mortgage.

• Modern Amenities: Modern amenities: new homes are made with the best energy-efficient design, reducing running costs.
• Lower Maintenance Costs: Lower maintenance costs: Your home is new, so it’s still covered by manufacturer or builder warranty, meaning less maintenance costs.
• Potential Incentives: Developers often offer incentives like reduced closing costs, upgrades, or even assistance with the down payment.

A new home mortgage can be a great way to secure a modern, energy-efficient home that meets your needs. It’s essential to understand the terms of your mortgage, consider all associated costs, and choose a mortgage type that aligns with your financial situation and long-term goals.