Understanding the new home buying proces
Whether you’re a first-time buyer or existing homeowner, buying a new home is an exciting milestone. While the process can sometimes feel overwhelming, we’re here to make it simple. We’ve detailed the steps below to guide you through the home buying process.
Find your dream home
The new home buying process begins by starting the search for your dream home. Find your nearest Gleeson development and contact our Sales Executive to discover more about the homes available. We have an array of 2, 3, 4 and 5 bedroom homes for you to choose from across our new build developments.
Don’t forget to check your eligibility for home buying schemes like Shared Ownership, Part Exchange, First Homes or Deposit Contribution.
Step one: Assess your budget and affordability
You’ll need to start by finding out how much you can afford to spend, and how much deposit you have. It’s important to consider the type of property and the location you want to be in, as these factors will impact the price of the home.
To reserve your home, you’ll need to obtain a mortgage in principle (also referred to as a decision in principle). View our handy guide to find out what a mortgage in principle is and how to obtain one.
The amount you will be eligible to borrow is dependent upon several factors and calculating your mortgage eligibility is key in identifying your budget.
When calculating what you can borrow for a mortgage, you’ll need to consider the following:
Most mortgage lenders will lend you around four to four and a half times your average salary (but this will depend on several other factors too). We always recommend looking at the latest market stats, as this is subject to change. Lenders will also consider any other income you receive, including things like a second employment, freelancing, benefits, commission or bonuses.
The deposit amount you need will vary depending on the house you're buying. Deposit amounts usually start from 5%, however, the bigger the deposit you have (such as 10% or 15%) could result in lower mortgage repayments or allow you to shorten your estimated mortgage term length. Learn more about saving for a deposit in our helpful article.
Alongside your annual income, lenders will look into your monthly outgoings to make sure that your monthly mortgage payments will be affordable. They’ll have a look into household bills, general spending and other debts such as credit cards or loans.
Interest rates can fluctuate according to what is going on in the housing market and wider economy, so the lender will carry out what they call a ‘stress test’ to make sure that you can still afford the payments if the interest rate goes up or if your personal circumstances were to change.
Your credit score is a representation of how the financial world sees you and demonstrates how reliable you are financially. Checking your credit score before applying for a mortgage is always a good idea. Lenders will use this score to decide whether or not to lend you money for your mortgage. Your credit score can be checked online via platforms, such as Experian or Equifax.
Something else to consider when calculating your budget is the repayment period of your mortgage term. The longer the period, the more spread out the capital repayment is, meaning your monthly rate will likely reduce.
Step two: Choose your solicitor
Now that you’ve checked your budget and arranged a mortgage in principle, you may wish to consider which solicitor you want to use.
Your solicitor will be an integral part of purchasing your new home. When you reserve your new Gleeson home, our Sales Executive will most likely ask you for the contact details of your solicitor. Gleeson can recommend solicitors to you, or you can choose your own.
You’re always best checking with them directly what they will cover for you, but typically they will handle contracts, conduct property searches, transfer the funds and finalise completion and offer any relevant legal advice.
Step three: Reserve your new home
Once you have found your new home, checked your affordability and eligibility for any applicable new home buying schemes, and arranged your mortgage in principle, you can make a reservation. There will be a small reservation fee to pay, which our Sales Executive will confirm with you.
The formal reservation process begins by entering into a Reservation Agreement which is signed by both parties.
At the point of reservation, our Sales Executive will explain everything that you need to know about your home, including any anticipated costs related to owning that home. Additional costs may include things such as Stamp Duty Land Tax (SDLT).
You will also be asked to sign a Reservation Agreement and be provided with a checklist during that meeting. This is to ensure that you have seen all relevant documents and plans and understand them.
To make your reservation as smooth as possible, we recommend that you visit the sales centre on your development and bring the following documents with you:
- Proof of ID – a passport and driving license are recommended
- Proof of address – suggested utility bill or council tax statement
- Your bank card – to make your reservation payment
Stamp Duty Land Tax (SDLT) is a Government tax on buying a property over a certain price bracket and is only applicable if the price of the home you’re buying is over the relevant threshold. Stamp duty is paid on completion.
From 1st April 2025, the stamp duty threshold changed to £125,000 for existing buyers and £300,000 for first-time buyers, meaning that our customers who purchase their first home under £300,000 will not pay SDLT.
For more information on stamp duty and the thresholds, please visit the Gov.uk website here.
Step four: Complete your mortgage application
Once you’ve decided on the new build home you’re purchasing, you’ll need to complete your mortgage application. Most buyers use a mortgage to purchase their home. There are two options for getting a mortgage: going straight to the lender or using a broker to help find the right deal.
At Gleeson, we work with new build mortgage specialists who can help you. Whether you decide to use them or not, it’s still a great idea to contact a financial advisor, as they will help you choose the right mortgage offer for you.
The mortgage process typically takes between four and six weeks. We have a range of helpful guides for first-time buyers and existing homeowners that detail the mortgage process from start to finish.
Step five: Assess your budget and affordability
After you have reserved your home, you can instruct your solicitor to proceed. Your solicitor will go through your draft contract and any supporting documents with you. They’ll be there to answer any questions and note down any queries you have. They’ll also make sure the contract is correct and that your deposit is fully protected and safely transferred.
Step six: Property searches
To speed up the home buying process, we will supply your solicitor with several searches carried out specifically on your plot by an independent search provider. Your solicitor will check these for you, just to confirm that everything is in place and how it should be.
Your solicitor may mention the term local authority search. All this means is that they will look at information held by the local authority involving the property that you are purchasing. They’ll look into planning permissions or restrictions and who is responsible for maintaining the roads, paths, sewers and all things construction-related.
Not only will they cover local authority searches, but they will also check the Land Registry, just to confirm that Gleeson is the legal owner of the property you are buying.
Your solicitor will make you aware of any covenants that are in place once you move in. Covenants are standard when buying a new build home, and we apply these so that we can protect the look and feel of your new build development. We have a handy covenant guide that our Sales Executive will give you but make sure to discuss this with your solicitor too.
The tenure of your Gleeson home will be freehold, unless you choose to purchase one of our Shared Ownership properties. This means that you and only you own and are responsible for the building and the land that it stands on outright and in perpetuity. It is your name that is on the Land Registry as ‘freeholder’, owning the ‘title absolute’.
Leasehold means that you just have a lease from the freeholder (sometimes called landlord) to use the home for a number of years. In these circumstances, leases are often anything between 90 and 999 years, but it does mean that you might have to pay maintenance fees to the freeholder.
If there are any other searches your solicitor feels necessary in addition to the ones we send to them, they’ll of course let you know and help you with them.
Step seven: Home options meeting
Your Sales Executive will invite you to a home options meeting where you’ll have the opportunity to personalise your home*.
We have a range of different payment methods to make securing your options easy, including paying a 25% deposit** upfront and paying the remainder of the balance on completion.
* Subject to availability and build stage
** Non-refundable
Learn more about your options here
Step eight: Exchange of contracts
Once solicitors are ready to exchange contracts on your new home, you’ll be required to transfer your deposit. This will ensure that the contracts are legally exchanged and the process is underway for the sale to be completed.
Your solicitor will give the go-ahead once you’re happy and any questions you might’ve had have been answered, and a mortgage valuation report has been received.
At this point, you will be legally bound to purchase your home. At this point it’s important you take out building's insurance. This protects you from the costs of repairing and rebuilding your home in the event of damage.
Step nine: Quality inspections
Quality control and inspections take place during each build stage. Before legal completion, a Gleeson Customer Relations Manager will visit your home to carry out a final quality inspection and confirm it is ready for handover.
You will also have the opportunity to arrange for a suitably qualified surveyor to carry out a pre-completion home inspection prior to legal completion. Alternatively, you can choose to carry out your own pre-completion inspection using the NHQB checklist.
CML
Once your new home is fully built, an independent building inspector will carry out an inspection to ensure your new home meets the NHBC standards.
Once signed off, a CML (Council of Mortgage Lenders) certificate will be issued.
Please note: If you choose to have your own pre-completion survey and notice has been served, this will not prevent legal completion from taking place.
Step ten: New home demonstration
Before legal completion takes place, we’ll invite you to your new home demonstration where our Sales Executive and Site Manager will show you how everything works, from the oven to the shower and everything in between.
Previously, you will have received links to our customer information videos explaining how to care for your new build home, please do take the time to watch these. The videos are also available on our Gleeson Homes YouTube Channel.
Legal completion
The best bit! Legal completion is when the property transaction is legally finalised. This takes place when our solicitor tells yours that we have received the transfer of money. We’ll hand over the keys, and your homeowner's pack, which contains your homeowner’s manual, appliance warranties and any other documents you need.
To help make your completion day even easier, we’ve created a helpful moving day checklist, which you can view here.
After completion, your solicitor will continue with the formal side of things and register you as the homeowner with the Land Registry. It can take several weeks for the Land Registry to complete this process. Once it has been completed, your solicitor will send you a copy of the updated Land Registry entry showing you as the owners of your new home.
We hope this handy guide has helped you through your new home buying journey.
If you’re still searching for your dream home, why not browse our website to find out more about our high-quality, energy-efficient new homes for sale?
Buying a new home brings a host of benefits, including a 10-year warranty backed by the NHBC, new appliances and a blank canvas for you to personalise.
Home buying FAQs
The new home buying process typically involves the following stages: assessing your finances and affordability, finding your home and choosing a solicitor, reserving your home, arranging your mortgage, completing all legal checks and surveys, exchanging contracts, final inspections, through to completion day.
The deposit you need for a house can vary depending on the mortgage lender and your individual circumstances, but generally, a deposit of at least 5-10% of the property's value is required. Gleeson recommends seeking independent financial advice to help provide more accurate information relating to your circumstances.
The majority of buyers use a mortgage to purchase their home. There are two options for getting a mortgage: going straight to the lender or using a broker to help find the right deal. At Gleeson, we work with new build mortgage specialists who can help guide you through the whole process. Please speak to a Gleeson Sales Executive for more information.
The legal process of buying a home, called conveyancing, involves transferring property ownership from seller to buyer after an offer is accepted. It is managed by solicitors/conveyancers who handle contracts, property searches, mortgage checks, and enquiries. Leading to the legally binding exchange of contracts and a set completion date for final funds and key handover, finishing with Land Registry registration.