A good understanding of the new build house buying process can help you manage your expectations and provide the insights needed to make the process as efficient as possible.

Consult a Mortgage Broker: Their job is to determine the maximum amount you can borrow based on your unique situation. They will inquire about your income and expenditure to calculate your borrowing capacity. The mortgage broker can also find suitable mortgage rates and provide an estimate of monthly mortgage payments.

Decision in Principle Document: The mortgage broker will provide you with this document. It confirms to the developer or estate agent that you are eligible to borrow a certain amount based on your financial situation.

Property Search: Start looking for properties on Rightmove, Zoopla, and other property or developer websites to find your ideal home.

Get Your Offer Accepted: Once your offer on a new home is accepted, you can pay a reservation fee, typically around £500. In return, you will receive a reservation form. From the day you pay the reservation fee, you have 28 days to complete the property purchase.

Inform Your Mortgage Advisor: Let them know your offer has been accepted. They will request additional documents, such as payslips, bank statements, and possibly proof of deposit. Your advisor will discuss mortgage types with you, make a formal recommendation, and submit a complete application for underwriting.

Instruct a Solicitor: Choose a solicitor who can complete the process within 28 days. If you don’t have a preferred solicitor, seek recommendations for those experienced in new home purchases.

Mortgage Application Progress: Once the mortgage lender has completed the property valuation and application underwriting, and reviewed all your documents, they will issue a mortgage offer. This typically takes 10-14 days, depending on the lender’s service timescales. Ensure your solicitor arranges an exchange date within 28 days of paying the reservation fee.

At Lucra Mortgages, we provide expert advice, guiding you smoothly through the mortgage process. Our team of experienced advisors is dedicated to finding the most competitive rates, tailored to your unique financial needs, ensuring the entire process is as stress-free as possible. Why wait? Contact us today at 01225 970 830 for a free consultation.