Am I supposed to have a mortgage ready to go for a new development?

sp00k

I'm interested in a new development that is happening soon in my local area. The construction company have not released any details yet regarding prices etc. but will be soon (so they say).

As I don't know what the prices will be, should I have a mortgage already approved and ready to go for when they do release more details? Or do I wait until more details are released, stick my name down as an interested buyer and go look for a mortgage then?

Apologies if this is a stupid question, I'm a single (prospective) first-time buyer.

Samuel T. Cogley

You go and get approval in principle now and then when you have a specific house you get full approval. Careful though as I'm not sure if booking deposits on new builds are refundable, someone else will no doubt know.

Brego888

Ah they are yeah

MSVforever

Go to all the banks and apply for the mortgage. You’ll will need your last 6 to 12 months saving statements, current account statements, credit card statements, pay slips and your latest P60.

Make sure to you have all the paperwork in order so you can bring them to your appointment with your mortgage advisor. They will then give you an idea how much you could potentially borrow. Make sure that the maximum amount you can borrow is stated in the mortgage application.

Now it's a waiting game as everything goes to the underwriters. Once they have made a decision they issue you an "approval in principle " letter or reject your application.

When you go to the launch of the new estate you will need to bring a copy of this letter and a cheque with the value of the booking deposit.

Btw the booking deposit is fully refundable until you sign the contract.

happyfriday74

Careful though as I'm not sure if booking deposits on new builds are refundable, someone else will no doubt know.

Booking deposit is always refundable don't worry.

When you go to the launch of the new estate you will need to bring a copy of this letter and a cheque with the value of the booking deposit.

As above. Get yourself mortgage ready now for whatever the figure you can afford. If the prices are launched in excess of what you get approved for hard luck but if they are launched for less and you are already approved at the higher figure its easy to go back to the bank and say you need less after being approved the higher figure.

New builds they will push the sales through quite hard on the seller side so you need to be ready to go.

sp00k

Thanks for the advice all. One last thing, is it the same story with the help to buy scheme, can I get approval in principle for that?

q85dw7osi4lebg

sp00k wrote: »

Thanks for the advice all. One last thing, is it the same story with the help to buy scheme, can I get approval in principle for that?

No you either get that or you don't, handy enough to get though, takes a few days.