A new-build mortgage follows the normal affordability and credit checks, but the purchase timetable is different. You may need to exchange soon after reserving even though construction and completion are months away.
Before paying a reservation fee
- Work out a realistic budget and arrange a Mortgage in Principle
- Check the proposed completion window and the developer's exchange deadline
- Tell your adviser about incentives such as deposit contributions, upgrades or legal-fee payments
- Confirm the expected service charge, estate charge and ground-rent position where relevant
Mortgage offer expiry and construction delays
Mortgage offers last for a limited period and validity varies. If building work is delayed, the lender may offer an extension or require updated documents and affordability checks. Choose the timing and lender with the expected completion window in mind.
Deposits and loan-to-value limits
New-build flats and houses can have different maximum LTV limits. A gifted deposit may be accepted, but it and all developer incentives must be disclosed. Read how LTV bands work before setting your budget.
Your route from reservation to keys
After reservation, your solicitor reviews the contract and development documents while the lender values the property and assesses the application. You exchange contracts, monitor the build and complete when the home is ready. New-build mortgage advice helps keep those dates aligned.
Expert tip: Ask who will update you if completion moves. The broker, solicitor and developer should all have the same expected date so an expiring mortgage offer is caught early.
This guide is general information, not personal advice. Figures are correct at the time of updating and rules can change. Your home may be repossessed if you do not keep up repayments on your mortgage.
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