Award-Winning Bad Credit Specialist · FCA No. 301173
New Build Mortgage With Bad Credit Can You Buy a New Build?
New build properties have their own mortgage challenges. Add bad credit and specialist advice is essential. Darryl Dhoffer explains exactly what is possible for new build buyers with adverse credit.
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Award-Winning
90+ Lenders
FCA No. 301173
01234 237321
New Build Mortgages and Bad Credit
New build properties present specific challenges for mortgage lenders regardless of credit history. Lenders apply stricter LTV limits on new builds because they are aware of the risk of new build premium — the tendency for new build properties to be valued slightly below their purchase price immediately after purchase. Most lenders cap new build lending at 85% LTV or lower.
When adverse credit is added to a new build purchase the pool of available lenders narrows significantly. However specialist lenders do consider new build adverse credit applications. Darryl Dhoffer has experience navigating the specific combination of new build requirements and adverse credit assessment.
Darryl Dhoffer — The Mortgage Geezer
20+ years in mortgages. Award-winning specialist. Featured in the Daily Express, FT Adviser and The Intermediary. I have helped hundreds of people across the UK who were told no by their bank — and I work with 90+ lenders including specialist adverse credit lenders you will not find on comparison sites.
When you contact me, you speak to me directly. No call centres. No being passed around. I personally review every case and respond within 2 hours.
CeMAPCeRERFCA 301173AWARD WINNINGINDEPENDENTWHOLE OF MARKET
Frequently Asked Questions
Can I get a mortgage for a new build with bad credit? ›
Yes but the combination of new build lending requirements and adverse credit significantly narrows the field of available lenders. Specialist lenders who accept adverse credit on new builds do exist. Darryl Dhoffer will identify the right lender for your specific credit profile and new build property.
Why are new build mortgages harder with bad credit? ›
New build lenders typically restrict lending to 80-85% LTV because of the new build premium risk. This means you need a minimum 15-20% deposit. With adverse credit the deposit requirement may be higher still. Additionally some specialist adverse credit lenders exclude new build properties from their criteria. Darryl knows exactly which lenders accept both new build and adverse credit.
Does the government Help to Buy scheme work with bad credit? ›
The Help to Buy equity loan scheme for England closed to new applications in 2023. Some regional variations may still be available. However shared ownership is still available and can work well for new build properties with adverse credit as the smaller mortgage makes specialist lender approval more achievable. Darryl will advise on current scheme availability.
Do I need a bigger deposit for a new build with bad credit? ›
Usually yes. Most specialist lenders require 15-25% deposit for new build applications with adverse credit. The exact amount depends on the credit issues and the lender. A larger deposit always improves options. Darryl will calculate exactly what deposit is needed for your specific new build and credit situation.
What is the reservation fee for a new build and how does it affect the mortgage timeline? ›
New build developers typically require a reservation fee of £1,000-£5,000 to secure a property. This is usually non-refundable if you cannot complete the purchase. With adverse credit getting a decision in principle before paying a reservation fee is essential. Darryl will conduct a soft search assessment before you commit to any reservation fee.
Get Your Free Assessment Today
No credit search. No obligation. Darryl personally reviews every enquiry and responds within 2 hours.
01234 237321
darryl@themortgagegeezer.co.uk
FCA No. 301173
43 Five-Star Reviews
The Mortgage Geezer is a trading style of Access Financial Services Limited, authorised and regulated by the FCA No. 301173. Your home may be repossessed if you do not keep up repayments on a mortgage.
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