Buying a new-build home as a first-time buyer.

The good bits

• No chain above you, and nobody has lived in it.
• A 10-year structural warranty (NHBC or similar), plus a two-year developer defects period.
• Energy efficient: lower bills, and lenders increasingly like it.
• Incentives: deposit contributions, stamp duty paid, flooring, appliances. Negotiate; the price is rarely the only lever.
• Schemes: First Homes (England), Deposit Unlock and other 95% new-build products, and shared ownership is mostly new build.

The catches

• The premium. New builds cost more than the equivalent second-hand home and may be worth less the day you move in. If you sell within a few years, that can hurt.
• The 28-day exchange. Developers commonly want you to exchange within 28 days of reservation. Your mortgage and legal work must move fast; tell your broker and solicitor before you reserve.
• Completion "on notice". If the home is not finished, you exchange now and complete when they say, which could be months away. Mortgage offers can expire; ask about extensions.
• Snagging. Every new build has defects. Get a professional snagging inspection before or just after completion and report everything in writing within the defects period.
• Leasehold and estate charges. Flats are leasehold; check ground rent (should be peppercorn on new leases) and service charges. Many new estates have "estate rent charges" for shared areas. Read them.
• Lender limits. Some lenders cap new-build flats at 85% or 90% LTV. Check before you reserve with a 5% deposit.

Before you reserve

1. Have your mortgage in principle from a lender that likes new builds.
2. Have a solicitor who does new-build work and can meet 28 days.
3. Understand the reservation fee (typically £500 to £2,000) and when it is refundable.
4. Get every incentive in writing on the reservation form; lenders need to see them and may reduce the valuation accordingly.

A note on the numbers. Thresholds, schemes and typical costs are correct as far as we know at the time of writing and are for England and Northern Ireland unless we say otherwise. Rules change and lenders differ. Check the current position, and get advice from a qualified broker before you commit.