Beginners guide to: new build homes
Beginners guide to: New Build Homes
Embarking on the journey to buy a new build home can be both thrilling and daunting, especially for first-time buyers. With the rise of construction projects across the country, more people are leaning towards purchasing new build properties due to their modern amenities, energy efficiency, and the chance to personalize their space from the ground up.
This guide provides essential information and advice on finding the right new build home, booking viewings, and key considerations before making an offer.
Finding a New Build Home
The first step in buying a new build home is knowing where to look. Whether you’re searching for a local unit or exploring options through online shops, there are several ways to find a brand new home that suits your needs:
- Explore Home Developers: Start by visiting the websites of reputable home developers in your area. They often list new build properties, upcoming construction sites, and planned move-in dates. This can give you an early insight into available options.
- Local Citizens Advice: For tailored advice, visit your local Citizens Advice Bureau. They can provide guidance on local housing developments and any government buying schemes available, such as Help to Buy or Shared Ownership, that might suit your budget.
- Use Property Portals: Websites like Rightmove, Zoopla, and local estate agents’ websites can be invaluable resources. Filter your search for ‘new builds’ or ‘new construction’ to find the latest listings.
How to Book Viewings
Before diving into the search for the best mortgage rates, it’s essential to familiarize yourself with the types of mortgages available. For new-build homes, some popular options include:
- Fixed-Rate Mortgages: These mortgages have an interest rate that remains constant throughout the term, providing stability and predictability in your monthly payments. This can be an attractive option if you prefer to budget without surprises.
- Tracker Mortgages: Tracker mortgages follow the Bank of England’s base rate plus a set percentage. While they can offer lower rates initially, they fluctuate with the market, which means your payments could increase if interest rates rise.
- Help to Buy Schemes: For new-build properties, schemes like Help to Buy can offer equity loans to help with the purchase, reducing the amount you need to borrow from a mortgage lender. Be sure to check the eligibility criteria and terms before applying.
Knowing which mortgage type suits your financial situation and preferences can help you narrow down your options and focus your search for the best rates.
What to Look Out For
- Quality of Construction: Inspect the quality of the construction and finishes. Look out for any signs of rushed work or substandard materials, as this can impact the long-term durability of your new home.
- Energy Efficiency: New build homes are typically more energy-efficient than older homes, which can lead to lower energy bills. Check for features like double glazing, efficient heating systems, and insulation quality.
- Warranty and Guarantees: Most new builds come with warranties, such as the NHBC 10-year guarantee. Ensure you understand what is covered and for how long, as this can save you from unexpected costs down the line.
- Mortgage in Principle: Before making an offer, it’s advisable to secure a mortgage in principle. This shows developers that you are serious and financially prepared to proceed with the purchase. Consulting with a mortgage lender early in the process can streamline your buying journey.
- Consider the Location and Community: Assess the location of the new build within the development. Proximity to amenities, green spaces, and transportation links can significantly impact your daily life and property value.
- Costs Beyond the Purchase Price: Be aware of additional costs such as service charges, ground rent, or contributions to communal areas. These can add up and need to be factored into your budget.
Understanding the Buying Process
- Set Your Move-In Date: Once your offer is accepted and contracts are exchanged, you’ll receive a more concrete move-in date. Be prepared for possible delays in construction, but keep in close communication with your developer.
- Reserve Your Home: Once you find the right property, you’ll typically need to pay a reservation fee to secure it. This fee is usually deducted from the total price upon completion.
- Solicitor and Legal Checks: Hire a solicitor who is experienced in new build transactions to handle the legal aspects, such as reviewing contracts, checking planning permissions, and ensuring all necessary searches are completed.