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Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.
Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.
Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.
This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.
Valuations in new build mortgages are always a challenge; with lenders often arriving at a lower figure than a developer is selling a property for.
In many cases, this is because the lender needs to consider any devaluation when a new property is no longer considered new - and will usually lend up to a maximum proportion of the sale price.
For many new build buyers, this means needing to come up with a larger deposit, or take out extra borrowing to cover the higher deposit required.
Here we'll run through how new build valuations to work, and how to manage the process smoothly. For tailored advice from an independent broker, contact Revolution on 0330 304 3040 or email us at email@example.com.
In a nutshell, the disparity exists because to a lender, a new build is a higher risk property, and might be harder to sell were they in a repossession scenario.
Newly built properties will be constructed to regulated standards, and be more energy-efficient than older homes. However, they depreciate quickly when sold, and it can be challenging to sell a new build that has already been lived in.
Common issues with new build property values relate to the low-cost land a developer has purchased for the construction, with problems such as:
Some developments are even built on top of old landfill sites and can result in subsidence and other issues.
If you are selling a new property, which isn't considered brand new any more, you might be competing with other pristine homes that have not yet been sold by the developer.
This competition makes selling on a new build to a second owner very challenging. There are other reasons why new builds drop in value once sold, such as if construction work is ongoing, it can be hard to sell a property that is situated in a building site.
Every mortgage lender will need to have a valuation to decide what a property is worth, that they are lending against.
In a new build, this will depend on:
The lender will need to have a market value figure, which is what they think the property could be sold on for.
The biggest reason that your mortgage lender might value your new build at lower than you have paid is that it is new, and there isn't an established sale price in that particular location.
Existing properties also have histories or work, making it easier to value.
The valuation matters, because if the lender undervalues the property, it will impact how much you can borrow.
Typical LTVs go up to 85% of the property valuation, which means you will usually need 15% of the property value as a deposit.
A new build worth £200,000 might attract a mortgage offer up to £170,000, meaning you need a deposit of £30,000.
There are specialist lenders who focus on the new build property sector and can usually offer more competitive lending terms. They will consider other eligibility criteria, such as credit history, age, and financial stability.
Working with a whole-of-market broker is a great way to make mortgaging a new build property much less stressful.
The Revolution team can:
For independent, expert support with finding the best new build mortgage for you, contact mortgage advisors on 0330 304 3040, or drop us a message at firstname.lastname@example.org to arrange a convenient time to talk.
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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.
Revolution Brokers understands that mortgages can be complex and confusing!
Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.