New Build Mortgages

• Exchange deadlines: Developers often require quick exchange — we prioritise DIP/MIP and lender choices that work to your timeline.
• Offer validity: Many lenders issue time-limited offers; we plan for practical validity and manage any extension requests with your builder/solicitor.
• Incentives & gifted deposits: We’ll explain what’s acceptable (e.g., builder contribution, flooring, legal fee incentives) and how it impacts LTV and affordability.
• Valuation on plans & snagging: We guide you on valuation types, completion on notice, and what to expect at handover.
• Flats/leasehold specifics: Ground rent, service charges, EWS1/cladding and maximum floor counts can affect lender choice — we check early.
• New build warranties: We confirm acceptable warranty schemes so your mortgage isn’t delayed.

• Deposit & incentives: Source of funds, gifted deposits, builder contributions and how they affect LTV.
• Income profile: Basic, variable pay, self-employed/company director evidence, probation periods.
• Property type: House vs flat, high-rise, studio size, new build lease terms, warranty provider.
• Affordability & credit history: We review your credit file up front and position your case with suitable lenders.

What Are the Advantages of New Build Mortgages?

When you purchase a modern, newly built house, there are several benefits for a homeowner, such as;

No renovations needed

A common (and costly) issue when buying an older house, which has been lived in, is that the decor, bathroom, kitchen, carpets, wallpaper etc may not be to your liking and one of the first things you would want to do is make changes which could quickly become expensive.

With a new build, this shouldn’t be a problem because all of these things will be brand new and not in need of repair or renovation. You should just be able to move in and start enjoying your new home without making any substantial changes.

Energy efficiency

As newly built houses have to meet modern building regulations, they are generally more energy efficient than older houses. This means that your energy bills should be lower.

No chain

Because your newly built home hasn’t been lived in, there is no seller chain causing potential delays. This is one less thing to worry about when buying a property.

Modern design

New builds are more likely to be built with a modern lifestyle in mind. This means that rooms can be open plan, with a better flow to them, and even with smart home technology. If you are buying ‘off plan’ then you may even have the opportunity to make choices regarding the layout, fixtures and fittings of your new home.

New home warranty

Newly built properties come with a warranty which can offer peace of mind regarding any issues you may find in your home after you move in. Warranties will usually last for 10 years but it is important to know what is (and isn’t) covered.

Government schemes

There are various government schemes to help especially first time buyers to get on the property ladder. Consulting a new build mortgage advisor can help you discover what is appropriate and available for you.

Get started

Quick questions with Craig Leigh, Mortgage Adviser at The Mortgage Broker, about getting a mortgage for New Build.

Craig Leigh breaks down the new build mortgage process.

Is it hard to get a mortgage for a new build home?

No, not if you know what you are doing. It’s not particularly hard to get a mortgage for new build. There are slightly fewer options available, but still plenty of choice and we work with lenders across the market to ensure we can find the right product. In terms of the process, it’s very similar to any other type of mortgage, just need to be fast, efficient and knowledgeable with regards to the best place to search and place.

Sometimes the timescales can differ due to the property not being built yet. Some lenders will have an extended offer period for new build property – so instead of your offer lasting the standard six months, some lenders extend it to 12 months to allow for that new build mortgage to stand.

As with a lot of mortgages, it comes down to criteria. There are many factors that can dictate the products available to any client. But for a standard client there will be very competitive deals out there for a new build mortgage. Any new build mortgage calculators out there, are indeed just standard mortgage calculators as there isn’t a difference in the products affordability.

How long does the new build application process take?

It depends if the property is built. If it’s not completed yet, it can be longer. In terms of the actual new build mortgage process, it’s a normal mortgage application. The property will be valued, whether it is built or off plan. That side of the process is exactly the same and won’t take any longer.  We will work on getting the mortgage lenders to extend the offer period.

What deposit do I need for a new build mortgage and how much can I borrow?

There’s a misconception with new builds that you need a larger deposit than standard mortgages, but there are lenders that will do new builds with a 5% deposit. This means they will lend up to 95% and you can absolutely get a 5% deposit mortgage on new build property

There are plenty of products for a 5% deposit, not necessarily using Help to Buy or another buying scheme. They are just standard mortgage products.

In terms of borrowing, that’s dictated by your income, outgoings and credit history. There’s no real difference in affordability when it comes to new builds  mortgages vs non-new build mortgages. The only difference is when it’s on a scheme. As an example, with any Help to Buy schemes, the income multiple is capped at 4.5 times income.

Are there other incentives available on new build homes? What is the Own New Rate Reducer Scheme?

Yes, The Mortgage Broker are an approved brokerage on the Own New Rate Reducer Scheme that launched in February 2024. The scheme was created by property finance company Own New and is aimed at making homeownership easier and cheaper than ever. Read more about the Rate Reducer scheme in the link just in this paragraph.

Sometimes developers will put incentives in place. That could be cash back from the developer; they might pay the stamp duty for the property; they could pay the legal fees or they could give you upgrades on the property.

Sometimes these incentives can be used towards the deposit. If there was cash back from the developer for the property, that be used towards the deposit which could mean a better mortgage product is available for you. These will be missed if you use a simply new build mortgage calculator, rather than speak to a new build mortgage broker who can ensure all schemes are searched.

What other schemes are available on new build properties?

Shared Ownership lets you buy a portion of a new build property. This means you only new to put in enough of a deposit for you to buy the portion of the property you are purchasing. However, for this, if you have a small deposit, we would always want to check 5% deposit mortgage.

Deposit Unlock is a scheme that is essentially the same thing, and was launched by the house-building industry to support people buying a new-build property with just 5% deposit put down.

What is the Deposit Unlock Scheme?

This is a new build mortgage scheme with home builders and lenders. There aren’t too many lenders on it but more and more are opening up to this and other New Build Mortgage Schemes. It’s for First Time Buyers and home movers. There are few restrictions in terms of the maximum loan available, but basically it allows you to buy with a 5% deposit on a new build property.

While you can get a 5% deposit with a standard mortgage, there’s less availability, so this is designed to increase the number of mortgages out there. It works directly with the home builders. This became popular as back in 2023 Help to Buy was ending.

What is shared ownership and how does it work?

Shared ownership is another great scheme. You can buy a percentage of a property and the rest is owned by the housing association. These are not always available for new build mortgages, but a lot of new developments offer these as a route to affordable housing. It helps people get on the property ladder.

I know plenty of people that have used the scheme to very good effect. With shared ownership you can ‘staircase’ up. If for example you buy a 50% share initially, after a few years you can buy more of the property using the equity, and repeat that all the way up to 100% where you’ll own the property outright.

The key is that you will pay rent to the housing association for the percentage you don’t own, alongside your mortgage payment.

What is a Joint Borrower Sole Proprietor mortgage?

This is commonly known as JBSP and sometimes Joint Borrower Sole Applicant. Again, it’s another great option and more lenders are doing this now.

It’s popular where a younger borrower or borrowers want to buy a property and their income’s just not enough to qualify for a mortgage. Maybe their parents own a property or have surplus income, in which case they can be added onto the mortgage to boost affordability. The parents won’t be on the deeds of the property, so it doesn’t cause any issues with stamp duty.

You can read more about joint Borrower Sole Proprietor HERE.

That’s one of the big selling points of this. It’s almost like a guarantor mortgage – it enables you to borrow more than you could through a standard mortgage.

It can also work the other way, where an older borrower uses their son or daughter’s income to help them buy a retirement home. A lot of the time within five to ten years the buyer can remove the guarantor from the mortgage and carry on independently. It’s a good way to help buyers get on the ladder.

What are the pros of new build mortgages?

One of the key pros with a new build is that there’s no chain – you don’t need to worry about other people pulling out – it’s almost all in your control. With a standard property there could be a chain of properties all waiting to buy and sell. Just one falling out can completely disrupt things and add time and stress.

Another pro to new builds is that they come with a warranty. A lot is covered so if things go wrong you can have repairs done without any cost to you.

Alongside that, new builds are low maintenance. You will have a brand new boiler. The electrics should be absolutely fine. Nothing should go wrong and you won’t have any maintenance costs for a long period of time.

Another good thing is you can potentially choose the finish on the property. If you’re buying off plan you can choose your kitchen, bathroom fittings, colours, carpets and things like that.

Are there any disadvantages with New?

In terms of the cons, if the property is not built you can’t physically see what you’re buying. You basically buy a show home. But you might view a five bedroom detached house with a lovely garden, but if you’re buying a two-bed terraced property that’s not really going to give you a fair reflection.

It’s also widely known that you potentially get less for your money in terms of size of rooms. Because of the way the housing market is these days, developers try to get as many houses on a site as possible. Sometimes gardens and rooms are not as big as with properties built in the 1960s and 1970s.

It’s not always the case, but potentially as the first people to move into the property, there could still be lots of building work going on around you. The roads might not be finished and there may be construction noise for a while.

How can the Mortgage Broker help me with a mortgage on a new build?

A broker helps by offering more options and making things simple. You could personally search a few lenders, but where should you start? As expert brokers, we know the lenders that are good for new builds, who offer the best affordability calculations, whose criteria will fit, and the best available products for each individual client.

It will save a lot of time and money. We will look holistically at your circumstances and the best product available for you. We also guide you through the process from start to finish. We can recommend solicitors, answer
any questions about buying the property, complete your application or get you on the Help to Buy scheme.

We’re here to advise and hold your hand all the way through. If there are any issues we can assist you through it all. We essentially take the stress away – it’s what we do day in, day out so we know how to deal with any situation.

If you have any questions, we’re always here to help – just give us a call.