Question about off-plan investments



New Member
Is it possible to buy off plan with a mortgage or do you have to be a cash buyer?

Michelle Barringer

Forum Partner
This will vary from project to project - most require some cash element - but always worth exploring - you may also find that you need cash upfront but can mortgage once the project is complete to allow you a good cash flow

Judith Beilby

Premium Member
It does depend if you are buying from a developer who exchanges with a deposit and then the balance on completion. Other developers who fund the build with staged payments from purchasers will require a cash pot. The second option often allows a reduced purchase price and then the option to remortgage 6 - 12 months after completion.
A good mortgage broker will be able to assist.


Whatever option you take regarding funding an off plan investment it is essential that you agree stage payments to incentivise the developer to finish the project as soon as possible. Do not fall into the trap of putting all of your money upfront only to experience delays with the development.

Many people will take out short-term loans to finance the initial staged payments for an off plan investment and then remortgage the property when its true value has been realised.


Well-Known Member
Where possible stagger your payments to incentivise property developers to finish their projects on time. This also protects your cash flow and limits your downside in the event of problems.


It depends on which country you want to buy in. For example in Cyprus you can get a mortgage on off plan with the developer as guarantor but you need to have at least 30% deposit.


New Member
I purchased an off plan development and have had to pay 20% (10% after 28 days and a further 10% 1 year later). The rest will be paid on completion in 2019/20
Gareth Bain

Gareth Bain

Forum Partner
It depends on a number of factors. The development which we are currently building out requires investors/buyers to put down £500 if they are buying through help to buy and £1000 if they are not. They would then have 28 days to exchange on the purchase.

The development is still off plan but some units have been developed and built out. So buyers would be able to get a mortgage because the development will be completed in 3 months time. A bank would not give you a mortgage now to purchase a property in two years as the rates will change with time.