New build normally means it either hasn't been built yet, or it's been completed but never sold or occupied (including show homes).
Many mortgage lenders also count new builds as:
- any conversion (such as a townhouse into flats)
- a substantially renovated or extended property
- homes built in the last couple of years
A brand-new property is a blank canvas for you to make your mark on. These homes are a popular choice, particular for first-time buyers. One of the biggest benefits of buying new is that you can often tailor the specifications to your own taste, and move in immediately, with no need for any improvements.
Holding deposit
Normally you’ll need to give a holding deposit to the developer when buying a new build. Terms and conditions vary and we can tell you what to look for when you check through them. One key point is on refunds ‐ will you get the deposit back if you don't secure a mortgage or change your mind?
Exchange deadline
The developer will expect you to exchange contracts within a short timeframe, usually four weeks. They may let other people reserve the property if you don’t meet this deadline. Exchanging contracts will commit you and the developer to going ahead, so it’s important you get the right mortgage quickly to avoid any last-minute worries.
