Have you found the ideal new build, but struggling to understand what type of mortgage you’ll need? On this page we’ll breakdown the benefits, the options available, and how we could help.
Why get a new build mortgage with Skipton?
- Low deposit - If you're buying a new build house and have been renting for 12 months in a row, you may be eligible for our Track Record mortgage. This allows a deposit of less than 5%, or even no deposit at all. If you have a 5% deposit or more, we have specific new build products available for you to apply for. And if you have more than 5% to deposit, even more of our products could be available to you.
- Quick service - Our underwriters respond quickly to mortgage applications on new builds. We'll aim to underwrite your application within 48 hours.
- Offer valid for longer - Typically, the validity of a mortgage offer for new builds can be extended from 9 to 12 months. Significantly longer than a standard mortgage, to cater for the time required for the build to complete.
- Offering you more - We could lend up to 95% of the home's value with our mortgages for Shared Ownership and First Homes England scheme properties. You can find out more about these and whether you might be eligible for the schemes on our Shared Ownership and First Homes England pages. We also have a Track Record mortgage for Shared Ownership purposes if you have a deposit of less than 5% of the share you’re purchasing.
You could lose your home if you don’t keep up your mortgage repayments.
What are the benefits of new home mortgages?
- No chain issues - As the first person to live in the new build property, you won't need to worry about a chain when moving home.
- More control - If you’re buying off-plan, you’ll often be involved in decisions about the build. These can range from layout options, to the style of the kitchen and bathroom fittings.
- More energy efficient - New build homes tend to have better energy efficiency ratings than older properties. This usually means lower costs to heat and power the home.
What type of mortgage product could I get for a new build?
A new build mortgage can help you buy a home that has been newly constructed, significantly modernised, or refurbished in the past two years.
We have a range of different mortgage products that might be suitable for you. For example, our Shared Ownership and First Homes England mortgages. If you are eligible to use these schemes you can apply to borrow up to 95% LTV for both new build houses and flats.
And for Shared Ownership mortgages over 95% LTV, we also have a Track Record product available.
As a reminder, LTV, or loan to value is the percentage of your property's value you are borrowing from the lender. For example, an £85,000 loan on a £100,000 property would be an LTV of 85%. The LTV you have affects the mortgage rates available to you.
Which type of new build is right for me?
There are a few main types of new builds. It all comes down to the type of property you’re looking to buy:
Off-plan property
Getting an ‘off-plan’ property simply means it hasn’t been built yet. So, you’ll make your decision on whether you want to buy the house based on the floor plans and technical drawings.
Recently finished homes
If the property is being sold for occupation for the first time and has been newly built or converted within the last 3 calendar years, it's still classed as a new build property.
Renovated property buyers
Homes can fall under the new build bracket if they’ve been recently modernised, restored, or substantially altered. An example of this could be a new barn conversion.
What are my next steps?
- Find out how much you could afford to borrow – You can easily work out how much you might be able to afford to borrow, based on your income and outgoings, through our affordability calculator.
- Speak to our experts - Chat to our mortgage team to see if you’re eligible for a new build mortgage. We can then work out a suitable option from our range, so you can apply for your mortgage with confidence.
If you’re looking to purchase a new build house or flat, have any questions, or if you would like to arrange an appointment with a mortgage adviser, give us a call on 0345 607 9825.