Do you pay the mortgage back only when you get the keys and moved in?
Mortgage starts on completion, same as any other house.
Do we arrange the mortgage now ready for completion (could be 12 - 18 months time when the houses are complete)?
Yes, but bear in mind most lenders offers of a mortgage are only valid for a limited period (say 3 months). They made out that getting it extended was a formality but it did take a bit of faffing about, having to fill out forms again etc. Theoretically you could be a approved for a mortgage today and then by the time you have a completion date, the offer has been withdrawn, although it's unlikely unless anything drastic changes.
Is there quite a bit of potential to haggle? i.e. a fair chunk off the price, better spec'd kitchen etc etc?
Depends on various factors, typically how well that developer is doing in the region, what demand is like on that development etc. Just bear in mind that the sales people will be giving it all that, you know, we are rushed off our feet, we couldn't possibly make appointments because then we'd be turning people away, we'll see what we can do but it depends on head office, you are really getting the bargain of century already here etc etc. One thing to bear in mind is that new builds typically don't have anything... no turf in the garden, no flooring, no curtain poles, no lightshades, no nothing. So getting stuff thrown in or some money towards 'finishing touches' is on the cards.
The way I played it was to agree a price in principle and then act surprised that I'd discovered carpets weren't included, giving the impression we were already at our limit and were worried about the cost. They then offered us £2500 towards it which I accepted.
I would love to get feedback from those on here who have experience of buying a brand new home!
Cheers
Graham
If possible have a good look around the area and see if the developer has sold any houses of the same type - if so, look it up on
www.houseprices.co.uk and see what people paid for them. The list prices are always a bit OTT because they know that people will haggle down to different levels and they want to maximise profit from the 'suckers' (e.g. even if they are prepared to knock up to £50k off, some people might only negotiate it down £30k).