What is a new build home?
Basically, it’s what it says on the tin. It’s a newly built home that’s not been previously lived in.
Why buy a new build?
Where to start? There are so many benefits. Undoubtedly the biggest perk is it’s shiny and new; it doesn’t have the wear and tear of an older property. This means it will need minimal maintenance.
New builds are energy efficient, with double glazing and good insulation, and built to the latest safety standards. You can also often choose the interiors, like flooring, carpets and tiles.
Most new builds come with a 2-year snagging period. This means if something does go wrong – for example, a roof leak – the builder needs to come back and fix it. There’s also a 10-year warranty for structural defects.
Another massive bonus is that there’s no onward chain. You can move in straightaway as soon as the house is ready. If you’re buying your first home in Wales, the government’s Help to Buy equity scheme maybe able to help you buy a new build home.
Above all else, buying a new build gives you and your family the chance to become part of a new community, where you can live side by side with like-minded people.
Why should I use Dupree & Co for a new build mortgage?
We don’t like to brag, but we really are leading experts in new build mortgages. We know the market well and can find you the best deal for your needs.
With new builds, developers sometimes offer cash or other incentives to secure a sale on a property. This can include payments towards your deposit or fees. Lenders have differing approaches to these incentives, and it can affect who will grant you a mortgage. We understand the finer details to secure the right mortgage quickly.
We’re also experts in the Help to Buy equity loan scheme and can assess whether you qualify for it and help you fill in the paperwork. If you’re looking to use Help to Buy in Wales, we ensure your financial assessment meets all the requirements.
We can also help you find a green mortgage, where lenders offer a lower interest rate or cashback for energy efficient homes.
What makes a new build mortgage different?
The main difference between a new build mortgage and a regular mortgage is that you’re securing a loan on a house that’s not yet finished.
House builders usually require you to exchange contracts within 28 days or potentially lose the house. We’ll make sure your mortgage application is with the lender promptly and track it through to a speedy mortgage offer. With your agreement, we’ll keep the house builder in the loop with your mortgage application, so you don’t have to.
Mortgage offers are typically valid for 6 months. If your house isn’t going to be ready within that time, we know the lenders who will offer a longer offer period, and whose processes for extending an offer don’t mean starting from scratch.
Are new build houses overpriced?
No, despite what you might have heard! There’s a general view that you’ll pay more for a new build property than an equivalent older property. On paper this might be the case, but keep in mind that with a new build everything is new, unused and energy efficient. With an older home you’re more likely to have costs to decorate, replace carpets and potentially re-model kitchens and bathrooms.
If you’re interested in a new build, looking at what else you can buy in the area for your money, and the condition of those houses, is a good idea.
What do I need to ask the developer?
There’ll be lots of things you’ll want to know about a new build before you decide if you want to make it your home. Handily, we’ve prepped a list for you to share with your developer…
- When will the property to be ready to move into?
- Are there any special offers available?
- Can you have copies of the property plans, drawings, specifications and other paperwork?
- Is the property leasehold or freehold?
- Is the house sold fully finished? (E.g. are carpets/flooring included, patios laid, gardens turfed?)
- What is the council tax band?
- Is there a management company or any shared facilities on site? If so, what are the costs associated with this?
- Is the reservation fee included in the cost of the property?
- How many car parking spaces come with the property?
- When will the access roads be completed and when will the final surfacing be carried out?
- Can you choose the finish of the kitchen and bathroom(s)?
- Can you choose the carpet and other flooring?
- Are there any tree protection zones with tree preservation orders?