New Build Mortgages help please

king_j

The fiancee and i are first time buyers, now we have seem some nice new build story houses locally we are interested in.

With us being first time buyers everything is confusing lol

So some questions i need answered if you can.

1. When we spoke with the story woman, she said they required a £1k deposit for the plot, then a further £4k on compeltion of the missives.

now thats £5k deposit, does that then come off the price of the house??

The house is £142k and we have a £15k deposit in the bank.

so im just confused as to where the £5k they want upfront comes from as we dont have anymore money available than the £15k we already have.

If we take it out of our £15k then we would only have £10k deposit against the house and that would put us below the LTV % and we would get the mortgage.

2. The house wont be complete till march next year, so when do we start paying the mortgage etc. from when its pre approved or from when we move in??

As i say may be simple questions but its just double checking at this stage.

northerner999

The £5K deposit will be part of the total price.

You start paying the mortgage when you complete, as this is when your mortgage provider transfers the money. One thing to check is that your mortgage offer is still valid when you complete - I bought a new build in 2006 that was delayed and delayed and had to get a new offer as my original one had expired. These things rarely follow the initial timescale.

Your conveyancing solicitor will be able to provide more details on the timing and when you are expected to pay what.