Buying a new build follows a different process to buying an existing home. The timeline is often longer, the milestones are different, and there are a few things, like exchange deadlines and build stage valuations, that catch people off guard if they’re not expecting them.
Here’s how the process typically works, from your first conversation with us through to getting the keys.
Getting mortgage-ready before you visit the show home
This is the step most people skip, and it’s the one that matters most. Before you set foot in a show home, it’s worth speaking to a broker to understand what you can afford and what lenders are available for new builds.
Developers expect buyers to reserve quickly, sometimes on the same day as a viewing. If you already know your budget, your deposit position, and which lenders suit your circumstances, you can make decisions confidently rather than rushing into something you’re not sure about.
We’ll run through your finances informally, explain your options, and give you a clear picture of where you stand. There’s no paperwork at this stage and no obligation. It just means you’re prepared when you find the right property.
Reserving your plot
When you find a plot you want, the developer will ask you to pay a reservation fee, typically between £500 and £1,000. This takes the property off the market while your mortgage application is processed.
The reservation agreement will include a deadline by which you need to exchange contracts. For most developers this is 28 days, though it can vary. This is tighter than a typical house purchase, which is why being mortgage-ready before you reserve is so important.
At this point, you’ll also discuss any developer incentives being offered. These need to be factored into your mortgage application, so your advisor needs to know about them early.
You can read more about what happens during this stage in our guide to reserving a new build property.
The mortgage application
Once you’ve reserved, your advisor submits your mortgage application to the most suitable lender. For new builds, lender choice matters more than usual. Not all lenders are comfortable with new build properties, and some have restrictions around developer incentives, build stages, or property types.
Your advisor will have already identified the right lender during your initial conversation. The application itself involves providing proof of income, bank statements, ID, and details of the property. Most of this can be done electronically, and your advisor handles the submission and chasing.
The lender will carry out their own affordability checks and credit assessment. If anything comes back that needs attention, your advisor will work through it with you.
Valuation
The lender instructs a valuation to confirm the property is worth what you’re paying for it. With new builds, this can work slightly differently depending on the build stage.
If the property is already built, the valuer visits and inspects it like any other home. If it’s still under construction, the lender may accept a valuation based on the plans and specification, sometimes called a “desk-top” or “paper” valuation, with a re-inspection closer to completion.
Some lenders won’t lend on properties that aren’t yet built to a certain stage. Others are happy to proceed on plans alone. This is one of the reasons lender selection matters with new builds. Your advisor will have matched you with a lender whose process fits the build timeline.
Mortgage offer
Once the valuation is satisfactory and the lender is happy with your application, they issue a formal mortgage offer. This confirms the amount they’ll lend, the interest rate, and the terms.
Mortgage offers typically last six months, though some lenders offer extended validity periods for new builds, sometimes up to nine or twelve months. This is important if your property won’t be finished for a while. If the offer expires before completion, you may need to reapply, and there’s no guarantee the same terms will be available.
Your advisor will factor the expected build completion date into the lender choice to minimise the risk of this happening.
Exchange of contracts
With your mortgage offer in place and your solicitor satisfied with the conveyancing (the legal process of transferring ownership of the property) you exchange contracts. This is the point at which the purchase becomes legally binding. Both you and the developer are committed.
You’ll typically pay a deposit at exchange, usually 10% of the purchase price (minus any reservation fee already paid). The deposit requirements can vary depending on the developer and your mortgage arrangement.
For new builds, there’s often a gap between exchange and completion, sometimes weeks, sometimes months, while the property is finished. During this period your solicitor will handle any remaining legal matters, and your advisor will keep an eye on your mortgage offer validity.
Completion
Completion is when the remaining funds are transferred, the developer hands over the keys, and the property is yours. Your solicitor coordinates the money transfer with the lender, and your advisor ensures everything is in order on the mortgage side.
Before completion, you’ll usually have a chance to do a snagging inspection, a walk-through of the property to note any defects or unfinished work. The developer is obliged to fix these, and most have a process for reporting and resolving snags after you’ve moved in.
On the day itself, your solicitor confirms when the funds have arrived and the keys are released. Most completions happen during normal business hours, so you’ll usually collect the keys from the site sales office during the afternoon.
After completion
Your mortgage payments start roughly a month after completion. Your lender will confirm the exact date and amount. Your new build will come with a builder’s warranty covering structural defects for ten years, and the developer typically has a two-year defect liability period for their own workmanship. Keep a record of any snags you spot in the first few weeks and report them promptly.
How long does the whole process take?
It depends on the build stage. If the property is already complete and ready to move into, the process from reservation to completion can take as little as four to six weeks, though the 28-day exchange deadline is the tightest part.
If the property is still being built, you might exchange early and then wait several months for completion. In that case, the mortgage application and offer happen first, and there’s a waiting period before completion day.
Either way, having your finances sorted before you reserve is what makes the difference between a smooth process and a stressful one. If you’d like to get ahead of it, speak to one of our advisors. We can have you mortgage-ready before you’ve even booked a show home appointment.
