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
New builds are a popular choice, particular for first-time buyers. The government also supports new developments with the Help to Buy schemes, and many housing associations offer you the option of shared ownership.
We can help you decide if a new build is the right choice. One benefit is that you can often tailor the specifications to your own taste, and you can move in immediately, no need for any improvements and no previous owners to worry about.
There are some extra points to consider though, and we can help you think it all through.
Holding deposit and exchange deadline
Normally you need to give a holding deposit to the developer when buying a new build. Terms and conditions vary so we'll tell you exactly 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 you change your mind?
Alongside deposits, the developer will expect you to exchange contracts within a short timeframe, usually four weeks. The developer may let other people reserve a property if this timeframe is not met. Exchanging contracts will commit you and the developer to going ahead, so it is important you get the right mortgage quickly to avoid any last-minute worries.
