Buying a new-build home
New-build purchases run to the developer timetable, and that timetable is the thing most likely to catch you out. We will introduce you to an adviser at The Finance Seer.
Your Local Broker is an introducer and does not give advice. Your enquiry is passed to The Finance Seer Ltd, who are authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Builder deadlines and expiring offers
Developers usually require exchange of contracts within a short window of reserving, often measured in weeks. That compresses everything, and it is the single biggest practical difference between a new-build purchase and buying an existing home.
Mortgage offers also expire, and on a plot that is still being built, completion can fall outside the life of your original offer. Some lenders offer longer validity precisely for this reason, and choosing one of them at the outset avoids reapplying later under time pressure.
How valuations can differ from the price
A surveyor values a new-build against comparable evidence, and where a development is early or unusual, that evidence can be thin. The valuation occasionally comes in below what the developer is charging, which changes what the lender will advance.
A shortfall does not necessarily end the purchase. It may mean contributing more, renegotiating with the developer, or approaching a lender that reads the site differently, but it needs handling quickly given the exchange deadline.
Warranties and what lenders require
Lenders expect a new home to carry a recognised structural warranty, and they each maintain a list of providers they accept. A warranty from a provider your lender does not recognise can stop an otherwise straightforward case.
Checking which warranty the development carries before you commit is a small piece of diligence that occasionally saves the whole purchase. It is exactly the sort of detail an adviser will ask about early.
Incentives and how lenders treat them
Developers commonly offer incentives such as covering fees, contributing to the deposit or including fittings. These are genuinely valuable, but lenders take a close interest in them because they affect the real price being paid.
Many lenders cap the total incentive they will accept as a proportion of the purchase price, and anything beyond that reduces what they will lend. Incentives must be disclosed, and an adviser will make sure they are presented in a way the lender accepts.
What an adviser will want to know
- The reservation form and the developer deadline for exchange
- Details of the plot, the expected completion date and the site
- Which structural warranty the development carries
- A full list of any incentives the developer is offering
- Proof of income, bank statements and details of your deposit
What happens next
- 1
You tell us what you need
One short form. Name, number, postcode and a line about your situation.
- 2
We pass your details on
We send your enquiry to The Finance Seer, who are authorised and regulated by the Financial Conduct Authority.
- 3
An adviser calls you
Usually within one working day. They will ask questions and explain your options.
- 4
You decide what to do next
Any advice comes from The Finance Seer, not from us. There is no obligation to go ahead.
Common questions
- What happens if the build is delayed past my mortgage offer?
- Offers expire, and delays are common on new developments. Some lenders provide longer offer validity for new-build purchases, and an adviser at The Finance Seer will factor that in from the start.
- Do I have to use the developer recommended broker?
- No. Developers often recommend one, but you are free to arrange your mortgage however you prefer, including through an adviser at The Finance Seer.
- Are developer incentives a problem for lenders?
- They are not a problem, but they must be disclosed, and most lenders cap what they will accept as a proportion of the price. Anything above that can reduce the amount they will lend.