Buying a home is a big step — and buying a new build can feel even more overwhelming when you’re faced with terminology, developer deadlines and a process that moves faster than you expect. If you're new to the world of property and mortgages, you’re not alone. Many first time buyers come to us feeling unsure about what everything means, and that’s exactly why we’ve created this simple New Homes FAQ. It explains key jargon, sets out what to expect and highlights when speaking to a mortgage adviser can save you time, stress and money.
What is an Approval in Principle (AIP)?
An Approval in Principle (AIP) — sometimes called an Agreement in Principle — is an initial indication from a lender of how much you may be able to borrow. It’s not a full mortgage offer, but it gives you a borrowing range based on some early checks. For new build buyers, it often becomes essential because developers move quickly. An AIP allows you to reserve a plot confidently, shows you’re a serious buyer and helps you understand which developments and price points are realistically within reach. If you’re looking at new build homes, arranging an AIP early can make the entire process run far more smoothly.
What does “buying off plan” mean?
Buying off plan means purchasing a property before it has been built, and sometimes before construction has even started. Developers provide floorplans, show homes and computer generated visuals to help you picture what the finished property will look like. The benefit of buying off plan is that you often have a wider choice of plots and may be able to personalise certain aspects of the home. However, build timelines can change, so your mortgage strategy needs to account for construction schedules, offer expiry dates and potential delays. Having an adviser guide you through these steps gives you more certainty throughout the process.
Do I qualify as a New Homes buyer?
You qualify as a New Homes buyer simply by purchasing a property that has never been lived in before. This can include homes sold directly by developers, properties bought off plan or homes purchased through a builder’s part exchange scheme. You don't need to be a first time buyer — anyone purchasing a brand new property is considered a New Homes buyer. Because some lenders have specific criteria or mortgage products for new build properties, understanding your options early can make a real difference to your affordability and choice.
What’s an EPC?
An Energy Performance Certificate (EPC) shows how energy efficient a property is, based on things like insulation, heating systems and construction quality. Every home being sold or rented must have one, and new builds tend to achieve higher ratings because they’re built to modern standards. For landlords and homebuyers, a strong EPC rating means a home is cheaper to run and more environmentally friendly. For lenders, it can signal long term efficiency and reduced running costs — which is why some now offer better rates or incentives for higher rated homes. In short, a good EPC rating can sometimes offset concerns around new build valuations and make borrowing options more favourable.
What does “exchange” mean on a new build purchase?
The exchange of contracts is the point where your purchase becomes legally binding. With new builds, developers often set much quicker exchange deadlines, sometimes within just 28 days of reserving your plot. That’s why it’s important to be prepared early. Understanding how your mortgage application timeline fits into the developer’s schedule, what documents you’ll need and how to respond if the developer wants to move faster can make the difference between a smooth transaction and a stressful one. Early conversations with an adviser help you navigate these deadlines with confidence.
What are developer incentives?
Developers sometimes offer incentives to encourage buyers — these can range from contributions towards your deposit or legal fees to upgraded fixtures or cashback on completion. While these can be attractive, lenders assess incentives differently, and in some cases, large incentives may affect how much a lender is willing to offer. Before committing to anything, it’s worth getting clarity on how an incentive might impact your mortgage options. A short chat with an adviser can help you understand the implications so you don’t run into surprises later on.
What does “snagging” mean?
Snagging refers to small, cosmetic issues that are identified once you move into your new home — things like minor paint imperfections, loose fittings or slight finish inconsistencies. This is normal with new build properties and not something to worry about. Developers typically allow you to raise snags within a certain timeframe, and most will fix them promptly, especially when covered by warranties.
What documents will I need for a new build mortgage?
Most of the standard mortgage documents apply — proof of income, identification, bank statements and evidence of your deposit. With new builds, you may also need documents from the developer, such as your reservation agreement, information on build timings and any details of incentives or warranties. Your adviser will let you know exactly what’s required based on the lender and the development you’re purchasing from, so you won’t be left guessing.
What happens if the build is delayed?
Build delays are common, especially if you’re buying off plan. If your property isn’t ready before your mortgage offer expires, your adviser may need to update the offer or re apply depending on the lender’s criteria. This is a normal part of the process and not something to panic about. The key is to keep communication open and prepare early so that any changes to timelines can be managed smoothly.
When should I speak to a mortgage adviser?
The best time to speak to a mortgage adviser is as early as possible — ideally before you reserve a plot or even before you start viewing developments. An adviser can help you understand your borrowing range, show you which lenders are particularly supportive of new build buyers, and help you secure your Approval in Principle so you’re ready to act quickly when you find the right home. Because new build timelines can be tight, being prepared early gives you the confidence to meet developer deadlines, anticipate what documents you’ll need and understand how your mortgage application will fit around the build schedule. Starting early also means you’re less likely to face unexpected delays if completion dates change, giving you much more clarity from the very beginning.
Ready to explore new build homes with confidence?
Whether you’re just starting to look at developments or already thinking about reserving a plot, we’re here to help you understand the process from every angle. From securing your AIP to navigating deadlines and comparing new build specific mortgage products, we’ll support you at every step.
You bring the dream. We’ll bring the guidance.
Speak to one of our expert advisers today by clicking here or calling 08000 38 37 36 to find out how these changes could work for you.
This is for information only. Products and rates vary depending on your circumstances, lender criteria and products available at the time.
