New Build process

tuck60

Probably a very silly question but if I were to buy a new build property which was due for completion later in the year, say August/September? When would I pay the deposit etc? Would it be a month after reserving but then you would have 4-5 months to save more money up?

BlueIsTheColour

Often builders release plots 6 months before plot is due for completion as this is a typical time for a mortgage offer to be valid, but not always. Builders usually push for 28 day exchange after reservation and will tell you incentives (if any) are dependent on this, but it often slips. At this point, a deposit would need to be paid, could be 5-10% depending on what has been agreed.

Completion then takes place when plot is ready, builder will update you. They usually provide 10 working days notice after they have received the CML from NHBC, assuming they are in their scheme.

Usually the builder will require you to be in a proceedable position at reservation, (assuming you have something to sell), obviously this doesn't apply if you are an FTB.

Mobeer

Typically reservation fee up front, deposit on exchange of contracts (maybe 8 weeks), balance on completion.

andyf1980

Worth saying that we only had to pay 5% deposit at exchange. Solicitor did ask to see proof of the rest of our deposit though.

tuck60

andyf1980 wrote: »

Worth saying that we only had to pay 5% deposit at exchange. Solicitor did ask to see proof of the rest of our deposit though.

So you would pay deposit at exchange and have the mortgage in place but repayments on that would not sort until the property is finished?

Mobeer

Your mortgage won't start until Completion. Payments likely start at the first whole month after completion, with a slightly higher payment in the first month to account for interest during the fraction of the previous month after completion.