New Build Considerations
New Build Warranties
New build homes typically come with warranties like NHBC Buildmark or LABC, which cover structural defects and build quality for up to 10 years. Always review the warranty details for peace of mind.
Snagging Lists
After moving into your new build, you might notice minor issues, like imperfect finishes or misaligned doors. A professional snagging survey can identify these problems, ensuring your builder addresses them promptly.
Buying Off-Plan
Buying off-plan can be exciting, as it allows you to customise certain features of your home. However, it’s important to work with a mortgage broker experienced in off-plan purchases to manage risks like valuation discrepancies and extended completion timelines.
Why Use a Mortgage Broker for Your New Build Mortgage?
6 Benefits of Using a Mortgage Broker
Expert Guidance
Mortgage brokers specialize in navigating the mortgage process, helping buyers understand options, terms, and requirements without jargon. Their expertise makes the journey smoother and less stressful.
Help with Complex Applications
If you have unique circumstances, such as being self-employed or having a low credit score, a broker can identify lenders with flexible criteria and advocate on your behalf.
Access to More Lenders
Unlike banks, brokers have access to a wide range of lenders and exclusive deals. This increases the likelihood of finding a mortgage tailored to your specific needs and circumstances.
Personalized Advice
Brokers offer tailored recommendations based on your financial situation, long-term goals, and preferences, ensuring you choose the best mortgage for your needs.
Save Time and Effort
A broker does the heavy lifting for you, comparing mortgage products, handling paperwork, and managing lender communication, saving you time and reducing hassle.
Better Mortgage Rates
Mortgage brokers often have access to exclusive rates and deals that aren’t available directly to the public, helping you secure a more affordable mortgage.
Document Checklist for New Build Mortgage
1. Proof of Identity
Lenders need to confirm your identity with one of the following:
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Valid passport
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Driving license (with your current address)
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National ID card (if applicable)
2. Proof of Address
Provide at least one of the following to verify your current residence:
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Utility bill (dated within the last 3 months)
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Recent bank or credit card statement
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Council tax statement
3. Proof of Income
Your income determines how much you can borrow. Lenders require different documents based on your employment status:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if you’ve recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Accountant-prepared financial statements
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Recent bank statements showing income deposits
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4. Bank Statements
Provide 3-6 months’ bank statements to demonstrate:
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Regular income deposits
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Financial stability
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Any ongoing financial commitments
5. Proof of Deposit
Show evidence of your deposit, whether it’s from savings, a gift, or a bonus. Accepted documents include:
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Savings account statements
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Gift letter (if applicable)
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Documentation of bonuses or other sources of funds
6. Property Details
For a new-build property, you’ll need to supply specific details, including:
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Reservation agreement from the developer
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Estimated completion date
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Builder’s warranty (e.g., NHBC, LABC, or equivalent)
7. Help to Buy or Shared Ownership Documents (if applicable)
If you’re using a government scheme like Help to Buy or a shared ownership plan, provide:
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Help to Buy equity loan agreement or reference number
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Shared ownership lease agreement
8. Additional Documents
Depending on your circumstances, lenders may ask for:
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Evidence of other income (e.g., rental income, dividends)
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Details of other properties owned
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Credit report or details of outstanding debts
9. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
10. Conveyancer Details
You will need to provide your conveyancer's details when applying for a mortgage. Find your conveyancer here.
