{"id":1131,"date":"2025-09-03T15:40:44","date_gmt":"2025-09-03T15:40:44","guid":{"rendered":"https:\/\/dovc.co.uk\/eng\/?p=1131"},"modified":"2025-09-03T15:41:53","modified_gmt":"2025-09-03T15:41:53","slug":"new-build-or-old-houses-flats-or-houses-may-note-below-regarding-mortgage","status":"publish","type":"post","link":"https:\/\/dovc.co.uk\/eng\/blog\/2025\/09\/03\/new-build-or-old-houses-flats-or-houses-may-note-below-regarding-mortgage\/","title":{"rendered":"New build or old houses, flats or houses &#8211; May note below regarding mortgage"},"content":{"rendered":"\n<p><br><br><br><br>Wish you had nice summer. Quite frequent people are quite struggle if they should buy new<br>build or old houses, flats or houses. May note below regarding mortgage.<\/p>\n\n\n\n<ol class=\"wp-block-list\"><\/ol>\n\n\n\n<p>What is the difference in uk mortgage when choosing new build house<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Deposit Requirements<br>due to the perceived risk of value depreciation after initial occupancy, a higher deposits<br>than usual may be required.<\/li>\n\n\n\n<li>Loan-to-Value (LTV) Ratios<\/li>\n<\/ol>\n\n\n\n<p>New Builds: Lenders cap LTV at 85-90% for houses and 75-85% for flats due to risks like<br>potential value drops or construction issues. Lower LTVs for new builds mean you need<br>to borrow less relative to the property\u2019s value, but you must provide a larger upfront<br>deposit.<\/p>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li>Mortgage Offer Validity<br>New Builds: Mortgage offers typically last 6 months, but some lenders extend to 9-12<br>months to account for construction delays, especially for off-plan purchases. If delays<br>occur, you may need to reapply or request an extension, which could involve reassessing<br>your finances.<\/li>\n\n\n\n<li>Incentives and Their Impact<br>New Builds: Developers often offer incentives (e.g., paying stamp duty, legal fees, or<br>providing cashback) to attract buyers. However, lenders may deduct incentives<br>exceeding 5% of the property\u2019s value from the loan amount, reducing how much you can<br>borrow.<\/li>\n\n\n\n<li>Warranties<br>New Builds: Most come with a 10-year structural warranty (e.g., NHBC Buildmark),<br>covering major defects. Lenders often require this for mortgage approval.<\/li>\n\n\n\n<li>Interest Rates and Fees<br>New Builds mostly are more energy-efficient, lender may have some green products on<br>these houses.: Interest rates may be slightly higher due to perceived risk, though some<br>lenders offer competitive rates or discounts for energy-efficient homes<br>What&#8217;s the difference between flats and houses<\/li>\n\n\n\n<li>Property Type and Ownership Structure<br>Flats: Typically leasehold, meaning you own the flat for a set number of years (e.g., 99 or<br>125 years) but not the land or building. You may need to pay ground rent and service<br>charges for maintenance of communal areas. Regular annual cost would reduce your<br>max loan size you may get. Lenders would have a min lease term remain after the<br>mortgage term. Some lenders would reject flat application due to the exposure risks.<br>Least but not the least, similarly for some new build, house or flat, service charge would<br>reduce the loan size too.<\/li>\n\n\n\n<li>Mortgage Availability and Lender Criteria<br>Flats: Lenders often view flats as higher risk due to factors like lease length, building<br>condition, or cladding issues (post-Grenfell). Mortgages may be harder to secure for flats<br>in high-rise buildings (5+ storeys) or those with short leases (&lt;80 years), as these can be<br>difficult to sell or remortgage. An EWS1 certificate (External Wall System) may be<br>required to confirm safety from flammable cladding<\/li>\n<\/ol>\n\n\n\n<p id=\"block-6474eaad-b663-4b26-bb85-9a982d21b913\">\ud83d\udce2 Join the \u201cUK Life &amp; Current Affairs Channel\u201d (DOVC.co.uk) Community! \ud83c\uddec\ud83c\udde7<\/p>\n\n\n\n<p id=\"block-3468dca3-cda7-4db6-b2d6-2651d03f7dbf\">\ud83d\udc4b Want to stay up-to-date on the latest UK life information, news, current affairs, policy changes, or share experiences with fellow Brits? Welcome to join the UK Life &amp; Current Affairs Channel (DOVC.co.uk) to discuss and share useful information together!<\/p>\n\n\n\n<p id=\"block-f65520b9-ae4e-4dc5-9417-15ad6bd2ab53\">\ud83d\udccc Community Features: \u2705 Real-time updates on UK current affairs and policies \u2705 Exchange of information on UK life, immigration, work, study, etc. \u2705 Mutual support with like-minded friends<\/p>\n\n\n\n<p id=\"block-72fefaa4-5ded-4e73-aca0-73e99d144af1\">\ud83d\udcf2 Join us now!<\/p>\n\n\n\n<p id=\"block-a5390300-4e17-4c6e-bd0c-31b3f95f39b0\">\ud83d\udd39 WhatsApp Group \ud83d\udc49&nbsp;<a href=\"https:\/\/chat.whatsapp.com\/BZ3AsOqVtF2BtQSqVFZ9ar\" target=\"_blank\" rel=\"noreferrer noopener\">Click here to join<\/a>&nbsp;\ud83d\udd39 Facebook Fan Page \ud83d\udc49&nbsp;<a href=\"https:\/\/www.facebook.com\/dovcuk\" target=\"_blank\" rel=\"noreferrer noopener\">Follow us<\/a><\/p>\n\n\n\n<p id=\"block-84dd20e7-0106-4304-a7b4-b7acfaf175e4\">Welcome to join us and explore UK life together! \ud83c\udf89<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wish you had nice summer. Quite frequent people are quite struggle if they should buy newbuild or old houses, flats or houses. May note below regarding mortgage. What is the&hellip;<\/p>\n","protected":false},"author":5,"featured_media":1132,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,8],"tags":[],"class_list":["post-1131","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-columns","category-jason"],"jetpack_featured_media_url":"https:\/\/dovc.co.uk\/eng\/wp-content\/uploads\/2025\/09\/Firefly_Wish-you-had-nice-summer.-Quite-frequent-people-are-quite-struggle-if-they-should-buy-699092.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/posts\/1131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/comments?post=1131"}],"version-history":[{"count":1,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/posts\/1131\/revisions"}],"predecessor-version":[{"id":1133,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/posts\/1131\/revisions\/1133"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/media\/1132"}],"wp:attachment":[{"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/media?parent=1131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/categories?post=1131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dovc.co.uk\/eng\/wp-json\/wp\/v2\/tags?post=1131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}