Executive summary
New build lending has moved fast in 2025 with several lenders having nudged up LTVs, loosened parts of affordability and new schemes being launch, especially for energy efficient homes. Challenges still remain though, with first time buyers still facing uneven pricing by region and tight affordability criteria. However, this mix creates real opportunity if you structure the mortgage application case right from day one.
Below, Sam Kirtikar (CEO) interviews Sam Noble (Sales Manager, CeMAP qualified and 9 years’ specialist focus in new build ) on what has changed, where buyers trip up and how our team gets new build purchases over the line without drama.
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Introduction
New build mortgages are not just normal mortgages on newly developed and newly built shiny homes. They run on strict developer timelines, incentive rules and lender criteria that can change quickly.
Recent coverage shows some lenders pushing higher up the LTV curve making these mortgages more accessible (Nationwide, Santander, Newcastle Building Society) and some with fresh innovations (Gen H’s builder supported equity gap and even 100% developer linked deals). There has been more attention on EPC A/B efficiency rating bands and whilst affordability remains tight; and new build prices still vary across the UK.
Simply put: There appears to be more on the table, but in order to navigate that to suit your circumstances, you need a specialist broker who can access and understand all the moving parts.
The 5-minute interview
Interviewer: Sam Kirtikar, CEO, The Mortgage Broker
Guest: Sam Noble, Sales Manager (CeMAP). New build specialist, joined TMB July 2024 and heads up our team of new build specialist mortgage brokers.
Q1. If you’re a first-time buyer looking at a show home this weekend, what’s the single biggest change in 2025 you should know about?
Sam N: Lenders are more open to new build at higher LTVs than they were a year ago and some have relaxed certain affordability edges. There are also new options tied to the home’s efficiency rating and a few builder supported structures. This has resulted in more choice, but perhaps even more complex to understand with over 12,000 products across the lenders, so picking the right route matters. Lenders can offer enhanced affordability amounts when purchasing a new build property as the running costs are lower and therefore lower monthly outgoings.
Q2. Headlines say regional new build prices are moving unevenly. How should a buyer use that info practically?
Sam N: Treat it like a risk dial. In hotter postcodes, assume valuations are stricter and lean toward cleaner incentive packages. In softer areas, be ready to negotiate extras sensibly. Either way, we align the lender to the local reality before you reserve.
Q3. You mention that buyers should “lean towards cleaner incentive packages”, what does this mean and what are incentive packages?
Incentives are extra’s that developers essentially throw in to sweeten the deal and can help significantly to get you in your new home with incentives such as deposit contributions. There are quite a few, so I will bullet them down for you after.
- Here is some example Incentive Packages on New Builds:
- Cashback on completion
- Deposit contributions (developer pays 3-5%)
- Stamp Duty/Legals paid
- Mortgage payment “holidays” or contributions
- Upgrades (flooring, appliances, landscaping, furniture packs)
- Part exchange or assisted move schemes
- Service charge/ground rent contributions for a period
- Own New Scheme- discounted interest rates by using cash incentives
- Energy Efficiency upgrades
- Discount on market value
Lenders treat most of these as price affecting incentives. Above a typical cap (often around 5% of purchase price), the lender may reduce the value they lend against (netting off the excess), which can trigger a down valuation or a bigger deposit need.
All incentives must be disclosed to your broker, solicitor and the lender.
Q4. There’s buzz about “track-record” approaches that recognise strong renters. Does that help on new builds?
Sam N: Yes, it can as a few lenders give credit for consistent rent history, which helps borderline affordability cases. It’s not a silver bullet and property type still matters, but for solid renters it’s a door we can push on. Some lenders will allow £0 deposit when purchasing a new build through certain developers.
Q5. Flat vs house on a new build site: what’s the constraint buyers don’t see coming?
Sam N: Policy ceilings. Some lenders cap LTVs or price thresholds for flats or tighten in specific blocks. For houses, appetite is often wider. We map your plot type to lenders that actually like it, not just those that “will consider” it. Some plots can come with restrictive resale factors know as a section 106 which some lenders will not accept.
Q6. Developers sometimes offer legal fees paid, flooring packs, or “equity top-ups.” How do you decide what to accept?
Sam N: Prioritise things that don’t distort the market value. Some schemes are brilliant whilst others complicate lending if the lender re-prices the deal after incentives. We run your package past the chosen lender up front so the valuation still works at completion.
Q7. I am a self employed buyer on a phased site, what trips me up the most?
Sam N: Year end timing. Accounts and SA302s need to tell a consistent story right when the developer wants you to exchange. If your figures are about to roll, we decide whether to use the current year or wait for updated numbers and pick a lender that plays nicely with that.
Q8. Green homes: do EPC A/B perks actually move the needle or is it just marketing fluff?
Sam N: They can shave cost or add cashback. They are useful but not magic. We compare the total cost over your likely fix term; sometimes a non “green” deal still wins once you include fees and flexibility. Some lenders will offer greater affordability when purchasing a green home.
Q9. What’s the one avoidable delay you keep seeing on new build cases?
Sam N: Late paperwork from the developer side with management packs, warranty evidence or final incentive disclosure documents and reservation forms. We chase those after you pay a reservation fee then keep everyone communicated to on dates, so you do not exceed the exchange deadline.
Q10. Final one: what two things would you say to our broker team about helping new build customers this quarter?
Sam N:
- Know the developer and sales executives and confirm the plot type, incentives, expected key handover dates, and any price caps before picking a lender. Work with the developer to make a deal work for them and your client.
- Own the timeline. Agree the valuation date, paperwork milestones and “Plan B” if dates slip. And update the client early, not when a clock is already red. M
- anage expectations for both your client and the developer based on the lenders anticipated offer issue dates and offer validity being considered vs the estimated completion window of the plot being purchased.
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