New build mortgage calculator
The process of buying a new build property can be pretty stressful, as much as it’s exciting. There’s just so much to think about, so it can be difficult to know where to start.
In just a few clicks, our mortgage calculator will help you determine how much your repayments will cost based on the information you give us. Let’s start by defining a new build property.
What is a new build property?
A new build property has been constructed from scratch or a home that has been substantially renovated, both within two years. This is to be differentiated from off-plan properties, which haven’t been built yet.
You might be considering what are the benefits of new build properties and what loan-to-value on a new build you can get. Below, we’ll list a few for you.
Pros of new build properties
New build properties come with several benefits, and these include:
- It’ll likely be in better condition than an old property. This means you’ll spend less on maintenance, and ideally, nothing on repairs, for some time.
- New buildings are often designed in such a way that they offer better energy efficiency, such as being better insulated. Improved insulation will lower central heating costs as less air is allowed out.
- New homes offer more decoration as well as lighting and furniture fitting options. Old homes will likely come with much already in place, whereas new properties offer more flexibility.
- You can avoid costly delays associated with house-buying, such as with a property chain, which is a sequence of sales that must occur at once.
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Cons of new build properties
Just like there are benefits, there may be a few drawbacks to purchasing a new build property, and these include:
- New build properties, for apparent reasons, are likely to be much more expensive than old properties.
- The criterion for lending on new builds is a little bit stricter, and interest rates may be a bit higher.
- In the case of off-plan properties, delays in construction work can cause hold-ups, which can complicate things for you.
What is a new build property mortgage calculator?
Simply put, it’s a special calculator designed to estimate how much a mortgage with us will cost you in repayments. We’ve specifically designed it to give accurate and relevant estimates. But remember that those figures are not set in stone as they do not consider all circumstantial variables.
Why use our new build property mortgage calculator
Our mortgage calculator helps by giving you a rough estimate of the cost of getting your mortgage with us. This figure, however, is not legally binding and is subject to change based on your circumstances.
Our experts will gladly discuss it with you and provide you with an accurate calculation of what your repayments might look like and what their terms will be. Our team is experienced and ready to assist with any queries or concerns you may have.
We’ll consider various criteria, which include but are not limited to:
- Your income
- Your age
- Your credit history
- The size of the mortgage you require
- If you’re a first-time buyer
- The type of property you wish to purchase
- Any pre-existing lending commitments you may have.
In the case of off-plan properties, we’ll also consider:
- The size and estimated cost of the plot
- The size of the planned property
- The cost of internal design
- The cost of landscaping
- Whether it’s done by a contractor or is self-managed.
Bear in mind that when you’re building your own house, if the market value increases or decreases while it’s being built, the agreed-upon purchase price will still have to be paid.
Since this calculator is specifically designed for new build homes, don’t hesitate to contact our team if you have queries regarding off-plan properties.
Think about this before getting your mortgage
Be sure to consider the following before contacting us or even using our mortgage calculator:
- If you’re building your house from scratch, consider how the overall purchase price may be higher because of unforeseen costs.
- Make sure you understand what repayment terms you might be comfortable with, and always budget for possibilities. Don’t accept repayments that are too costly to you and that you may not be able to afford in the future.
- Make a sizable deposit if you can, as that’ll help lower your monthly mortgage repayments. First-time buyers, in particular, should always remember to think about the long-term costs.
Are lending criteria different for new build homes?
Unfortunately, the lending criteria for new homes are quite a bit stricter than for old properties. This is primarily because new homes often come at a premium price and are anticipated to reduce in value after the first couple of years they’re built. Although this may not always happen, it is a risk.
Off-plan properties are also liable to have expiring mortgage offers and will need to be reapplied for, potentially more than once, depending on how long the development takes.
How are new build mortgages calculated?
New build mortgages are calculated considering many factors. If your home is still under construction, you may find that a property developer might ask for a reservation fee to secure the land where your property will be built. They may also ask for a higher deposit.
Scenarios where this calculator would be useful
New build mortgage calculators are extremely useful in many situations to determine your mortgage’s interest rate and repayment cost. A lot of first time buyers take out new build mortgages, they’re useful if:
- You’re planning on building a new property and are considering what a mortgage may cost you at a particular value.
- You’re looking to avoid estate agent fees and are searching independently. You’re currently looking at new-build properties and would like to know what mortgages might be available to you.
- One or a few estate agents have given you an offer for a new-build home, but you are unsure if you can afford them.
Concluding considerations
Deciding on a mortgage is a big decision, and we understand this and like to give our clients the freedom to weigh their options appropriately.
While you’ve now seen all the advantages associated with new builds, you can also see that there are a few disadvantages, particularly because these homes come at a premium.
Considering your options and the prices of the areas you’re contemplating purchasing can take some time. For now, reading our FAQs may help you make a more informed decision.
FAQs
How much am I able to borrow on a self-build property?
“How much you’re able to borrow on a self-build property will depend on quite a lot of variables. For instance, if you’re looking to get a mortgage to convert a barn into a home, which qualifies as a self-build property, you’ll need eco-friendly design elements and processes throughout the build to increase your chances of a successful mortgage application.
Have a discussion with one of our experts, who, after considering your circumstances, will give you the best offer we can make for you.”
How are new build mortgages different?
Unfortunately, a new build mortgage can have a higher interest rate as they’re often riskier due to the chance that the house value may decrease in time. New build mortgage calculators can give you a rough estimate of how much repayments may cost.
How much money will a self-build mortgage cost?
The amount of money self-build mortgages cost will vary depending on numerous factors such as age, credit history, and income. Start by consulting one of our experts for mortgage advice and a good estimate.
How do I know if I can afford to build a house?
First, start by estimating how much building a house will cost. Then use mortgage calculators to figure out how much repayments may cost. After this, answer whether you can afford the repayments based on your monthly income. Your lender will value your new build property for the mortgage requirements.
Do you pay stamp duty on a self-build?
A huge advantage of building a property is that you won’t have to pay the potentially quite costly stamp duty when you’ve finished building it.
How much money should I save before buying a house?
It’s a good idea to save a good percentage of the sale price. This could be around 25% to cover various expenses such as the down payment and moving fees, amongst other potential costs. The mortgage will cover the rest of the price.
Get your new build mortgage below:
Contact us if you’re interested in buying a new property, and we’ll weigh your options with you. You can call our friendly experts on 0808 301 9509.