Is it harder to get a mortgage for a new build?

It can often be much more difficult to get a mortgage on a new-build home than many new homebuyers expect. Individual lenders take a varying approach to brand new homes, with some refusing applications whilst others may be happy to loan. No two lender’s policies or deals will be the same.

Is mortgage guarantee scheme still available?

Can I take advantage of the mortgage guarantee scheme? The scheme was launched in April 2021, and is open to new applications until December 2022.

Can I use help to buy if I have previously owned a property?

Here, we guide you through what each Help to Buy scheme offers. In fact, they’re also available to previous homeowners, as long as they don’t own another property at the time of their Help to Buy purchase. You can’t use the scheme if you’re purchasing a buy-to-let property, or a second home.

How long does it take to get a mortgage approved for a new build?

The average time for mortgage approval time is around 2 weeks. It can take as little as 24 hours but this is usually rare. You should expect to wait two weeks on average while the mortgage lender gets the property surveyed and underwrites your mortgage application.

How does a mortgage work for new construction?

A one-time close construction loan, also known as a construction-to-permanent loan, automatically converts the construction loan into a long-term mortgage when the home is built. You only have to complete one application and close the loan once. That also means you only have to pay closing costs once.

Who can use mortgage guarantee scheme?

The scheme is available to anyone who is looking to buy a house and not just first time buyers, but there are other eligibility criteria that you need meet: The house has to be valued at less than £600,000. It doesn’t have to be a new build, unlike the Help to Buy equity loan scheme.

Is Help to Buy on all properties?

The Help to Buy equity loan limit was raised from 20% to 40% of the properties purchase value for homes in all London boroughs to reflect the higher property values seen across London.

What is the Help to Buy scheme 2021?

What is Help to Buy? The main aim of Help to Buy is to improve the access to and affordability of mortgages for newly built flats and houses, specifically for those people who cannot afford a large deposit. The current Help to Buy scheme runs in England from April 2021 to March 2023.

Are there any new government backed mortgages for first time buyers?

A new government-backed mortgage scheme will help first time buyers or current homeowners secure a mortgage with just a 5% deposit. New figures show demand for home ownership has soared during lockdown, with nearly 80% of private renters now saving for a deposit

When is the new 5% mortgage scheme available?

A new government-backed mortgage scheme to help people with 5% deposits get on to the housing ladder is available to lenders from today (19 April 2021).

Can you get new build shared ownership in UK?

If you live in England and are struggling to find an affordable home on the open market, you may be able to get help through the government’s New-Build HomeBuy shared ownership scheme. The following guide gives you an overview of the scheme, who is eligible, possible pitfalls and questions you need to ask before applying.

Why is the new Mortgage Guarantee Scheme important?

The new mortgage guarantee scheme which comes into effect today will give providers the confidence to lend and help families and young people get on the property ladder without the prohibitive burden of a large deposit.