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Buying off-plan or new build – what are the risks?

Firstly, and perhaps most importantly, you need your mortgage offer to be available at the exchange of contacts and still be valid on the day of completion. At the Mortgage Marketplace, we will make sure you have a valid mortgage offer at every stage.

If you’re taking advantage of Help to Buy, we will not only get you the best mortgage deal, we’ll help you with your Help to Buy loan at every stage.

It’s also worth remembering that you will pay Stamp Duty on a new build purchase unless you’re a first-time buyer purchasing up to £300,000, or £500,000 on shared ownership properties. See our Stamp Duty Calculator here.

What are the risks of buying new-build or off-plan?

With the uncertainty of Brexit and with a general cooling of property price increases, there is a risk that the property you’re buying will be worth less than you agreed to pay on exchange of contracts.

Can a new-build mortgage application be complicated?

Getting a mortgage for a new-build property can be challenging. If you are buying off-plan, you will need a mortgage offer that is still valid when the property is complete. Some lenders may under value new build properties.

Can I use the Help to Buy Scheme?

Yes, the Government could provide funding for up to 20% of the purchase price, for more details look at our Help to Buy Video here.

How much can I borrow on a new-build mortgage?

Unless you are using the Government Help to Buy scheme which only requires you to contribute a 5% deposit, most lenders will be require you to contribute a 10% deposit on a new build. To find how much you can borrow click here.

What Stamp Duty do I pay on a new build property?

First time buyers don’t pay any Stamp Duty on property purchases up to £300,000 or £500,000 for shared ownership properties. To calculate what Stamp Duty you will pay click here.

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The Mortgage Marketplace