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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 6th October 2020*

Did you know that the age of a property will have an impact on how much mortgage you can take out?

Mortgages on new builds and older constructions differ because mortgage lenders have different considerations, even if the property is the same size or location.

Jump to our calculator journey to establish what you can afford, the costs and which of the best deals you’ll qualify for.

How the mortgage is calculated will vary which is why it’s important to know more about the process as it may affect properties you buy now, or in the future.

We’ve put together this handy article that explains what you need to know about mortgages for new build properties.

We’ll be covering the following topics:

For the best way of calculating your new build mortgage costs, call us on 0808 189 2301 or make an enquiry and we’ll connect you with an expert who can give you an estimate based on your circumstances. 

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How is a new build mortgage calculated?

When it comes to getting a mortgage on a new build property, at the time of you making your mortgage application, the property may not have been built or could still be under construction. 

As well as the mortgage itself, there are also additional fees to take into account. For example, the developer might ask for a reservation fee to secure the land your property will be built on, or ask for a higher deposit, such as 20% of the total property price.    

Can I use a calculator to work out my new build mortgage costs? 

Whether you’re calculating how much you can afford for a new build home or any other type of property, a mortgage calculator can be useful in giving you an indication of how much you can expect to get. 

A calculator will give you a rough estimate of how much you can borrow based on your desired amount, how much deposit you have and the number of years you’re like to pay your mortgage back over, though bear in mind that any figure generated with a calculator won’t be 100% accurate or tailored for your situation.

Whilst there isn’t a mortgage calculator specifically for new build properties, the best way to get an accurate quote is to speak to an expert.  

The brokers we work with will consider factors like your age, occupation, salary, monthly expenditure and outgoings as well as credit history and the property type you’re interested in. 

Once they have the answer to these, they are better placed to advise you on what you can expect from different mortgage providers. 

Where can I find a new build mortgage calculator in the UK?

There are a number of online mortgage calculators that will give you a rough idea about the deals on offer, but there is no specific new build mortgages calculator. You can use the general mortgage calculator on our website for a rough estimate, but for an accurate quote, speak with a mortgage expert.

When it comes to using online calculators for trying to figure out how much a new build mortgage may cost you, every lender will use a different way of calculating the result you see. 

The best way to get an accurate measure of how much you could borrow, or how much it will cost you in repayments to borrow a certain amount, is through a whole-of-market mortgage broker, like those we work with. 

With whole market access, the experts we work with can find the best deals on the market to suit your circumstances, some of which many not even be available to the public. Make an enquiry to get started. 

New build mortgage calculators in Ireland

While there may be some differences when it comes to mortgages in Ireland, including the fact that mortgages will be offered in Euros rather than Sterling, the way mortgage calculators work for new build mortgages will be the same as you would find in the UK.

The most important thing to remember when you’re using any online mortgage calculator is that the results you get will be based on only very rough calculations and be dependent upon the variables used by the lender providing the calculator.

For an accurate idea of what you might be able to afford, talk to one of the expert mortgage brokers we work with. 

Where can I get more advice?

You may find that using a mortgage calculator to estimate the cost for a new build isn’t ideal for your circumstances, so it’s vital that you speak to an experienced mortgage broker who will be able to give you a bespoke calculation.

To get help finding one, give us a call on 0808 189 2301 or make an enquiry and we’ll put you in touch with the experts that we work with.

Updated: 6th October 2020
OnlineMortgageAdvisor 2020 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.