How to get a mortgage in principle to reserve a new build plot

first-time buyer getting a mortgage in principle to reserve a new build plot

If you want to feel like you have made a big first step towards purchasing your dream home and putting yourself in the best position possible, then getting an MIP in place is the right thing to do.

A mortgage in principle (MIP) is an essential step in successfully reserving your new build home. It shows developers that you are a serious and financially ready buyer. Plus, knowing your budget allows you to act swiftly, getting ahead of the competition to secure your new home.

If you are ready to embark on your journey to homeownership, then our blog post is here to help you understand why getting an MIP is key in finding and securing your new build home. We’ll explore why it is necessary, what you need to do and how to do it in the easiest way possible.

At Bliss Financial, we’re helping individuals on their journey to homeownership. We help with various stages of reserving a new build house, from getting the mortgage in principle to signing a legal contract. Whether you’re a first-time buyer or looking to move home, we are here to help you. Contact us today, and let’s talk through your situation.

What is a mortgage in principle (MIP)?

If you want to take the first big step in purchasing a property and are interested in reserving a new build home, then heading to an experienced mortgage broker or bank to ask for a mortgage in principle (MIP) should be top of your home-owning agenda.

Essentially, an MIP is a confirmation from a lender or broker that you would probably be accepted for a mortgage. While it isn’t a guarantee, it is a good sign and certainly makes you more attractive to sellers when putting in an offer.

How long does a MIP last?

While an MIP is great, especially if you are close to putting in an offer on your dream home, it doesn’t last forever. It is a snapshot of your finances and the current housing market at the specific moment you apply. A MIP is typically valid for around 60 to 90 days, giving you a couple of months to use it.

If you don’t use it within this timeframe, then you will need to reapply. Why? This is because your financial situation or mortgage interest rates could change at any given time. Lenders essentially want to make sure your MIP reflects your current situation.

Is it best to get an MIP before starting the buying process of a new build?

Before you dive headfirst into the exciting adventure of searching for your new build home, it is a good idea to have a mortgage in principle in place first.

This puts you in a much better position when looking to purchase a new home by:

  • knowing your budget;
  • boosting your confidence as a buyer;
  • putting you ahead of the competition.

What do I need to reserve a new build house?

If you are looking to reserve a new build home, then there are a few things you’ll need to do to make the reservation process a successful one.

Get in contact with a mortgage broker

To ensure a smooth and swift house-hunting journey, you should speak to an experienced mortgage broker who can help you navigate the complicated process.

At Bliss Financial, our goal is to make getting a mortgage easy. We will go through your personal and financial situation to help you understand what you might be able to afford and help you get your mortgage in principle, ready for when you want to make an offer.

With our range of mortgage services, we can help you with whatever your situation. Contact us today to discuss your mortgage needs.

Take a look around

Before jumping in and putting an offer on the first home you’ve fallen in love with, it is a good idea to look around and get a feel for the place you might be calling home one day. This means visiting a few properties, looking around the area and finding as much information as possible to help you make a smart decision.

Negotiate or make an offer on the purchase price

Once you have got your MIP and found the property you want to reserve, you’ll need to put in an offer or negotiate the price. You may be questioning whether you can actually negotiate the price of a new build. After all, it is brand new. But the answer is yes, and you absolutely should!

Many developers will be happy to accept below the asking price, as new builds are typically priced much higher than other properties on the market and tend to come with expensive premiums.

Pay the reservation fee

If you are happy and want to go ahead with securing your new home, then you’ll need to pay the reservation fee to reserve your plot. This fee is usually around £500 to £1,000. It holds the property for a fixed time while you finalise the details, like securing a mortgage, getting a mortgage valuation, and paying any required legal fees.

You can also back out at this point if you need to, but you will lose the reservation fee if you choose to do this.

Get your mortgage offer

Now that you’ve successfully paid the reservation fee for your new build property and put in an offer, you’ll need to complete the buying process. This involves finding a good mortgage deal. As mentioned earlier, this is what we specialise in at Bliss Financial. We can help you find the most suitable mortgage deal for your personal and financial situation.

Looking to reserve your new build home? Get in touch with Bliss Financial today

At Bliss Financial, we understand that while it is an exciting time, the journey of buying a house and arranging a mortgage in principle can be a tricky road to navigate. Rest assured, you can expect our full support right up to the move-in date, from securing your MIP agreement to making a full mortgage application.

We specialise in mortgages for new builds, and as experienced brokers, we have access to a wide range of lenders.

Whether you’re a first-time buyer or looking to change things up and move home, we can support you every step of the way. We aim to take the weight off your shoulders by dealing with mortgage lenders and property developers, leaving you with the exciting part of planning and packing for your new home.

Get in touch today to arrange a video chat consultation or a phone call or to pop in for a cuppa.

Frequently asked questions about reserving a new build property

If you are looking to reserve a new build home and want to learn more, then take a look at some of our most commonly asked questions below:

Will the mortgage lender value the property before giving a mortgage in principle?

You shouldn’t need to carry out a property valuation to get a mortgage in principle. An MIP is usually a pretty straightforward process and can even be completed online in some cases. However, when it comes to getting a full mortgage, your mortgage lender might expect a property valuation before providing an offer.

Do you have to pay to reserve a new build house?

You will usually need to pay a reservation fee to keep hold of your new build home before you pay the deposit and exchange contracts. This fee varies in price, but as long as you choose to go ahead with the purchase, the cost will be deducted from the total purchase price upon completion.

How long can I reserve a property for?

After paying the reservation fee, you can usually reserve a new build plot for around 28 days, although this can vary among sellers. You’ll have plenty of time to dot the ‘i’s and cross the ‘t’s. During this time, you should consider if you are happy with the property and the agreed completion date and look to get a mortgage offer secured and ready to purchase your new property.

Picture of Amanda Marsden
Amanda Marsden

Amanda is the founder and owner of Bliss Financial. She has been helping clients with their mortgage and insurance needs for over 15 years. Her passion is to fully explore the options open to them and ensures the process is easy with no stress. She also specialises in helping clients invest in buy to let property and landlords.

Contact Amanda

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Selected from a number online because they stated that they have experience working with people from the military. This was essential given how moving on assignment often can be a negative for many banks when it comes to lending. Amanda was excellent and the process was swift and easy. We had planned to visit face to face but the process was just as high quality over zoom and phone.
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Amanda is great, everything was explained clearly and always responsive to queries, would highly recommend.
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This is my second time remortgaging through Bliss and Amanda. The service provided has made my life stress free and Amanda was thorough with her research into what deal and term would be best for me based on economic uncertainty and where I am atthis point of my life.I'd not use any other mortgage broker ✨
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Amanda was extremely knowledgeable and helpful from minute one. I am very grateful to her for diligently working within a fairly tight timeframe to identify and provide me with the right product.Her communication throughout was prompt and well-received. I look forward to using her services again.
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Excellent service. Fully deserving of 5 stars. Nothing to fault. Great communication and everything went through in time with no issues. Would highly recommend Amanda Marsden.
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Amanda was absolutely brilliant from start to finish. She helped us secure our forever home mortgageWould 100% recommend for anyone needing financial services of any kind!
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Absolutely perfect service from start to finish, no stress, no hassle can’t recommend enough. Thankyou
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We have used Amanda for many years. She knows exactly what she is talking about and offers the best advice. I cant recommend Amanda enough if you're thinking of getting a mortgage or going through a Re-Mortgage. She reassured us throughout the whole process and was in touch every step of the way. Thank you Amanda, here's to many more years.
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Amanda was amazingly helpful and made the whole process hassle free. Even when I changed my mind a few times nothing was a problem and the end result was exactly what I was looking for. I would highly recommend Amanda and the team
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We used Amanda a few years ago for our first mortgage. She was an absolute hero for us. She sat us down and explained everything thoroughly putting all out worries at ease as first time buyers. We had issues with our chain which meant our mortgage offer lapsed and Amanda was there every step of the way right through to the day we moved in. Due to remortgage in the next year or so and I will always go back to Amanda.
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Bliss WILL get you the best mortgage solution possible. The best mortgage broker around!!
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Amanda was absolutely brilliant from start to finish. She helped me secure my first mortgage and also helped with organising the best deals on life and home insurance for my house. Would 100% recommend for anyone needing financial services of any kind!
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We specifically selected Bliss as financial advisors for our mortgage, as we'd read great reviews from other first time buyers. Amanda was so welcoming and helpful, introducing us to the whole process. We actually went to her thinking we were fish out of water, and wanting to but not expecting to but for a few years, just wanting to get our heads around it. However everything felt easy, quick and well explained and we were accepted for a within approx 2 months of starting our search. Amanda has been amazing throughout the entire process - even personalising the way she presented documents to us to suit our styles (me, needing to talk everything out and my partner more graphs and charts!). Evening appointments were organised to work around our work schedules. She was in constant communication with all stakeholders, chasing things up for us and since moving, also supporting with insurances. I'd highly recommend Bliss, and specifically Amanda for any financial advisory services however particularly first time buyers, as no question feels like a silly question. For future purchases, selling, and any other financial services - we will definitely return to Bliss.
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Great service. Professional, friendly and efficient. Amanda did a great job in advising me and then finding and securing the best mortgage to suit my situation
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Absolutely amazing service, couldn't have received any better. Very friendly and quick at replying to all enquiries. Very understanding of our circumstances which were difficult but still got us everything we needed for our new house. Thank you again Amanda, will be recommended you to everyone who needs a mortgage broker ☺️
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Amanda helped us to secure our first mortgage. She was on hand for support all the way through the process and very helpful in explaining things in a more simple way to help us to understand. She kept in contact with us regularly throughout the process and really made us feel at ease. We cannot thank Amanda enough for her support and help.
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I came across Bliss financial solutions by google search when desperately trying to find a mortgage advisor who could do the impossible (secure a DiP quickly, that met my difficult short term self employment circumstances).Amanda from Bliss has been a pleasure to work with. The perfect balance of professional and friendly, incredibly organised and certainly not deterred by a challenge. I’m really grateful for the time and effort she put into my case to allow me to secure the house I wanted within the mandated timeframe. Thank you so much Amanda and Bliss for allowing us to get our new home 💜
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I just want to say how amazing Amanda at Bliss financial is!!. My partner and I were looking at buying a shared ownership prooerty and everything started happening very quickly ... but Amanda just took over from the start and literally kept me at ease the whole way . Herprofessionalism throughout was second to none and helped with every aspect of the process. Thanks to Amanda we now have the most beautiful home and we will be forever grateful for everything she has done for us. I would 100% recommend Bliss Financial.
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Switching mortgages has always been a frustrating and time consuming experience but using Bliss made the process seamless and most importantly stress free! They were excellent and I would highly recommend their services.
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Amanda has been totally invaluable through our first home buying journey. Always on hand to answer the hundreds of questions with her excellent knowledge and guidance.I would absolutely recommend Bliss Financial Services.
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We have been in our new house for nearly 2 months now all thanks to Bliss Financial Solutions, Amy was amazing sorting our new mortgage out and talking us through everything we needed to know. Very smooth process with good communications. Thank you very much. 🙂
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I would like to thank Bliss Financial Solutions for amazing, professional and swift responses during the process of my first home purchase.It has been an absolute pleasure each time I have met you and will 100% have no hesitation for contacting you again for future requirements and highly recommending you.
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We have recently used Amy at Bliss to help us get a mortgage. After having a stressful time at high street banks and other mortgage brokers, we contacted Amy for help. Amy was absolutely excellent and the work she does is outstanding. Amy went above and beyond and managed to find us a mortgage in a matter of days. Throughout the whole process Amy kept us up to date and managed the mortgage application seamlessly despite a stressful time with other companies. I would like to express my many thanks to Amy and the team at Bliss for being so excellent and thanks to them we now have the keys to our new home.
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My experience with Bliss Financial was excellent, everyone went above and beyond. Provided the best advice and more. Our mortgage was sort with out any stress. I will continue recommending to friends a family looking for mortgage advice.
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First class customer service, highly recommend Bliss Financial Solutions LTD to anyone that values a professional, efficient and personal approach. Being first time buyer my partner and I had very limited knowledge around mortgages and all things connected. Amanda and her team went above and beyond to ensure we understood everything and provided advice when we had any questions with immediate response. Bliss financial limited we thank-you kindly for making the whole mortgage process so easy, you took all the strain off us especially need due to the birth of our daughter 3 weeks ago you made the mortgage process easy and hassle free. I will definitely be a customer for life and if there is anyway I can share your company’s profile on social media please let me know as I would love to recommend your service to others.Many thanks Melissa Hodgson, Andrew and Eloise - three very happy customers 😊
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Amy and the team were absolutely amazing! Nothing was too big. We didn't really know much about the process and Amy explained everything so we fully understood! We couldn't have done it without the team 100% would recommend to anyone! Thank you all so much ❤️
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We used Bliss to re morgage our property. Amy was absolutely fantastic, made everything feel really easy, she was clear in all her explanations, open and honest with setting expectations, and really knowledgeable. The whole process was really smooth. We also discussed life insurance which was something of a priority giving we had just had a little boy recently. Amazing service. Would highly recommend. We will definitely be using again for any future mortgage or insurance needs.
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Excellent service, they really came to the rescue after being messed about by our current lender, amazing absolutely amazing. Just wish we went to them sooner would have saved a big headache 😃
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Efficient and friendly. The team helped source the most appropriate mortgage for us at a very busy and pressured time for interest rates and timeframes. They were very helpful in expediting the completion when our solicitors were holding up proceedings. The little gift afterwards was much appreciated also. Would recommend.
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Bliss Financials was a vital part of my journey to home ownership in the UK. They always gave personalized yet professional advice and were always accessible and responsive all through the process. They were very thorough, transparent and client centered; offered and discussed all the available options to enable me make an informed choice. I would totally and wholeheartedly recommend their services and I am very grateful to Amy who handled most of the process as well as Amanda and Sophie. Great team/firm!
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I would like to praise the excellent service of the Bliss Financial Solutions LTD.I have a brilliant experience with this company. I was buying a house for the first time and Bliss Financial advised me on every step of the process (mortgage, insurance), offering me suitable options that I could choose from. I always got great offers and still was in control.All members of the team (Amy, Sophie, Amanda) are brilliant, very professional, friendly and responsive.I am very grateful to Amy (my consultant) as she did help me very much throughout the process, nothing was a problem,I received responses straight away and she also prompted other parties to act swiftly (lender, insurance companies, solicitor, etc.).If I need mortgage or insurance in future, I will definitely ask Bliss Financial for help again.
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I am now on my second mortgage which was arranged using Bliss. What an outstanding service. From start to finish the Bliss team were great in answering queries that I had. They even pushed to get me an extension to my offer seeing me secure a great rate before the recent rises. This certainly helped me secure my dream home. I would recommend Bliss to anyone who is after a professional and personable mortgage advisor.
Dean
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Amanda worked extremely hard and was really efficient is securing a fixed deal for me at a time when rates were being removed across the board. I would recommend them to anyone.
Andrew M.
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Excellent from start to finish. Every decision and option were made clear to us about the implications and any questions we had were answered in a timely manner, making remortgaging easier than I imagined it would be. Thank you to Bliss Financial Solutions for excellent service and attention to personal details that really made us feel like our priorities were put first. We will use again at our next remortgage and would recommend to anyone.
Melissa B.
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Excellent company, fast and responsive and a professional outfitI appreciate Amy’s swift advice on a deal to secure a good rate 12hrs before the rate changed
Adam L.
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What a fantastic service. I contacted Amanda via a friend recommendation. She was friendly and helpful. She passed me to Amy who was my advisor for the whole process.As a first time buyer, I was like a rabbit in the headlights. But Amy reassured me and made the whole thing a breeze, with regular contact and updates along the way.Thank you to you all.Highly recommend 😁See you when it's time to remortgage 😉
Steven R.
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We have used Bliss/Amanda for a number of mortgages now and the service has always been second to none!We have had complicated financial situations that the Bliss team have used their extensive knowledge to support and ensure we receive the best product for us.We always recommend Bliss to all our friends and family!Thank you to Amanda, Amy and Sophie
Samantha B.
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The staff are amazing and very helpful throughout the whole process, the rates are very competitive and the after sales service is second to none, I would highly recommend Bliss Financial to anyone.MarkAspire Property Rentals
Mark L.
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Any Lyons found us an excellent mortgage deal and then helped us through a long complex legal process regarding the house. She was there for us all the way through keeping us informed and chasing up when there were delays, Thank you Amy and her team.
Ken W.
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Amy has been amazing from the start of our process as first time buyers until completion. We had a few delays along the way due to waiting on a new build but Any was there to guide us through every step of the way to help us rearrange another mortgage and kept us regularly updated on the process. I have already recommended her to friends and family and wouldn’t hesitate to use her again when we remortgage.
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Really happy with the service from Amy and Bliss Financial Solutions - Amy made sure everything was as straight forward as possible, was super communicative and really easy to deal with. Would not hesitate to recommend them.
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Amanda was very helpful. Gave advice over a number of options for my situation. Many other companies didn't even bother calling me back. Will definitely go back to Bliss again in the future.
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