When looking for a mortgage on a new build property you need to keep in mind that developers work towards strict deadlines which means you are usually given 28 days from putting your deposit down to the point of exchange. It is better for you if you start the mortgage process as soon as you can, to adhere to these deadlines. Here at LTC Mortgages we can work to these deadlines so that you get the perfect new build property for you.

How long does the mortgage process take and how long is my offer valid for?

Your mortgage offer will be valid for 3-9 months which means that you need to complete before this expires, if the offer needs an extension to give you more time to complete then we can look into that with the lender, but the length of time given varies with each lender. Lenders do offer specialised new build mortgages which may include a longer period on your mortgage offer just in case there are delays with the developers.

We have access to the whole of the market when it comes to mortgage lenders so we can weigh up the options that are available to you when looking for a new build mortgage. If your mortgage offer was to expire or issues pop up during the process then we can get those sorted by securing a new offer.

Are you a first time buyer?

Shared Ownership

Some developers have the option of a shared ownership mortgage, this is when you buy a percentage of the property and pay rent on the remaining percentage to the housing association. This gives first time buyers the chance to get onto the property ladder as they can buy more of the remaining percentage throughout their mortgage term.

Shared ownership mortgages are a type of home loan that allows the borrower to purchase part of a property, known as the share. The remaining share is purchased by either a housing association, local council or private developer and the borrower pays rent on this share of the property.

As the name of the scheme suggests, by using it you'll initially own a share of your home, as opposed to owning 100% of it, with the option to purchase some or all of the remaining share in the future. This type of mortgage is designed for people who cannot afford a mortgage on the home outright or have a smaller deposit.

For more information on shared ownership visit our page here

Deposit Unlock Scheme

For those aspiring to be homeowners but struggling to make a large deposit, there is now a potential solution. Deposit Unlock offers a mortgage scheme where home movers with an existing mortgage and first-time buyers can access 95% mortgages on new builds with just a 5% deposit.

This mortgage scheme offers first-time buyers a chance to own their dream home at an affordable price point. The scheme aims to encourage the purchase of new homes, making it easier for individuals to take their first step onto the property ladder. It is an exclusive option for new builds, so those looking for an existing property will have to look elsewhere.

The Deposit Unlock mortgage scheme offers a lower-risk option for mortgage lenders, protecting them from the loss they would incur if a buyer failed to keep up with their mortgage payments and if they defaulted. With traditional 95% Loan-to-Value mortgages becoming rare, this scheme offers a solution for potential homeowners who may not qualify for traditional mortgages.

You can only use this scheme if you are purchasing a property from a house builder that is registered and participating in the scheme. Your mortgage also has to be submitted with a participating mortgage lender.

For more information on the deposit unlock scheme visit our page here

If you are looking to purchase a new build property or have any questions regarding the deposit unlock scheme, contact us today on 0151 662 0188 or email [email protected].