Ready to reserve? Let’s get your new-build mortgage moving.

What to check before you reserve

Before paying a reservation fee, make sure you understand:

• The reservation period and whether the fee is refundable

• Every incentive, contribution or upgrade included

• The expected completion window and any long-stop date

• The structural warranty being provided

• Any service charges, estate charges or leasehold costs

• Whether your mortgage offer is likely to remain valid until completion

Your conveyancer will advise on the legal terms. We’ll check how the property, incentives and expected timescale fit the lender’s criteria.

What counts as a new build?

In simple terms, it is a newly constructed home being sold for its first occupation. However, lenders may also class recently converted or substantially refurbished properties as new builds, so their definitions can vary.

Most new build homes come with an approved structural warranty, such as NHBC Buildmark. This usually combines an initial builder warranty with longer-term insurance for certain structural problems. The protection is not unlimited, so it is important to understand exactly what the policy covers.

Depending on the stage of construction, you may also be able to choose elements such as kitchen units, flooring or bathroom finishes. Developers sometimes offer incentives too, including deposit contributions, help with Stamp Duty or upgraded fixtures and fittings.

All incentives must be declared to the lender and could affect the amount they are willing to lend.

Why buy a new build?

• Less immediate maintenance. Everything is new, although you may still find snagging issues that need to be corrected.
• Better energy efficiency. Modern insulation, heating and construction standards could mean lower energy bills than in an older property.
• Warranty protection. An approved warranty provides protection against certain problems with the building work.
• No onward chain. You are buying directly from the developer, so there is no seller waiting to move elsewhere.
• A home you can personalise. Buying early enough may allow you to choose some of the finishes before construction is complete.

Why can the mortgage be more complicated?

Some lenders apply stricter loan-to-value limits to new builds, particularly flats. Mortgages with a 5% deposit are available on certain new-build properties, but this will depend on the lender, property type, purchase scheme and your circumstances.

The lender will also consider:

• The property’s construction and warranty
• Whether it is a house or a flat
• Any developer incentives you are receiving
• The lease terms, service charges and ground rent
• Whether the property is complete or being purchased off-plan
• Whether the mortgage offer will remain valid until completion

This is where using an adviser who understands new builds makes a real difference. We will identify suitable lenders, check the criteria before applying and present the application correctly from the outset.

The reservation deadline

Developers often ask buyers to exchange contracts within around 28 days of reserving, although your exact deadline will be set out in the reservation agreement.

That leaves limited time to arrange the mortgage, valuation and legal work—particularly if documents are missing or the application is submitted to an unsuitable lender.

If the property is still being built, the expected completion date matters too. Mortgage offers have expiry dates, and a construction delay could mean requesting an extension or submitting a new application.

Speak to us before reserving if possible. We can review your budget, arrange an Agreement in Principle and help you prepare the necessary documents so you are ready when the right plot becomes available.

Apply online or call us on 01225 258900 for a friendly, no-obligation chat.