New Build Process and Deals

[BeauticianNotMagician81]

We have found a new build we like but it isn't due to be ready until the autumn and we have sold. We will need to go into a rental.

Anyway I wondered if anyone could tell me a little about the whole process. Does our mortgage application even last that long? I know they want us to exchange quite fast. How does it work when you want to complete a sale but have yet to complete on your onward property is it a major stress?

Also what deals have you managed to get. So far we have been offered a £9000 deposit contribution and £6000 towards extras. I want to try and get a 2% price reduction, stamp duty and flooring. I don't think that's a massive ask when we are having to go into rental. What have you managed to negotiate.

Following

We had to change to a new mortgage product twice. We were days away from having to get a new valuation done. What you can negotiate will depend on the plot, its price & how much in demand it is. We managed to get 3/4 of our stamp duty paid & flooring throughout, so equivalent of about 20k on a 600K+ house. We bought ours completely off plan before it was released. Didn't even get to see a show home as none of its type available. The developer is currently pushing a plot opposite us which isn't shifting so I bet they would offer a better deal on that one, but nothing like the level you are hoping for. You are being incredibly optimistic expecting so much tbh. How much is the house you are looking at?

It depends on how much interest there is on the plot. They will generally prefer to give you stuff rather than money off the headline price, as it doesn't look good to reduce the cost but flooring nobody else can tell. Though if you don't ask you won't get!

We have bought a new build (reserved it in September, it's not due to be built till this winter!), And got £5k incentives and stamp duty (but first time buyers so that wasn't much!). After agreeing that, two other couples came in wanting our house so we had no more negotiating room.

The builder will typically push for a 4 week exchange, as they'll be building things like kitchen units/flooring etc to your specification, so if you drop out they could struggle to sell elsewhere. Mortgage offers are usually about 6 months but if you're looking at completion slightly out of that time ask if they'd extend the exchange date by a few weeks.

Good luck!

The house is on at £450,000. Most on the site have been offered with stamp duty paid and flooring included. I know people that have had a reduction on cost also. It's more the problems that can occur later on that worries me, buying so far in advance. The mortgage process is stressful enough without having to keep completing it.

If you can get the builder to agree to hold it until the completion date is within 6 months then you should be fine on one mortgage application. We will have to ask for an extension on ours but have no plans to take out any credit or change any contracts etc. Of course things can chance but they can change at any time

Thank you all. I guess it's hard re the completion date as so many things can cause delays. We might just go for a house in our next desired area that's ready now 🤦‍♀️