New home purchase mortgages for new buyers
Getting on to the house purchase ladder has never been easy, but with the recent turmoil in the financial markets, house purchase of any kind has become doubly difficult. The most successful house purchases are normally in the new housing market as builders and banks want to move their construction projects along quickly and not have them standing idle.
Choosing the right property is a fantastic experience and very exciting. Just looking around visiting show homes is a good day out, as you look for your dream home. If the situation is right and there is building society support in terms of how much they are willing to lend, and you know the mortgage costs are covered, you can relax and just enjoy the moment. Maybe there’s a marriage in the offing, and all this is part of the most exciting time of your life.
The mortgage offered will be dependent on income, and there are formulas which are standard procedure based on the income from two or three times the main wage earner plus half the second salary. If that adds up to the right amount and you can afford the deposit, then you are on your way.
The big building companies will have plenty of linked finance options as well, and there are arrangements with building societies to offer new purchasers deals which may include some carpeting, kitchen units or white goods. It’s an incentive which is hard to ignore as you think of the fully fitted kitchen ready and waiting for you to move in. Other incentives could be a turfed lawn, or a stone driveway. All these relatively small things can tip the balance, so it’s worth looking around carefully when you are about to make a new house purchase with a mortgage.
Some folk are willing to buy ‘off the plan’, and this is where the house is yet to be built but you have decided this is the development you really want to live in, and can put a deposit down on a plot. The great thing about this is that you can study the plans with the developer and just simply choose the style and the location from the drawings. The builder will already have a show house which you will have seen and although there may be differences, such as style or size, you can usually make a good decision based on the quality of the show house and the reputation of the builder. You can then say “We want to reserve plot 46, which is a 4 bedroom detached house with a garage on the corner of Badgers Close”. A mortgage company will probably be linked to the development so there are few problems in arranging the finance.
You then have the exciting prospect of going along every so often and seeing your brand new house being constructed. There’s no better feeling when you think of the day when you will be able sit out on your turfed lawn thinking “this is ours”. There may be small hiccups along the way – no building project ever goes completely smoothly but that’s an advantage too as you can call in and have a chat with the building foreman and ask him to correct any problems.
