How to Get a Mortgage on a New Build Property in the UK: What Buyers Need to Know

Why New Build Mortgages Are a Different Beast

Buying a new build isn’t the same as buying an existing property — and your mortgage application reflects that. Lenders treat new builds differently, often applying stricter criteria, lower loan-to-value (LTV) limits, and tighter timescales. Go in unprepared and you could lose your reservation deposit or miss your completion deadline.

Here’s exactly what you need to know before you apply.

Checklist: Before You Apply

• Check your credit report — Use Experian, Equifax, or TransUnion (all free via their respective sites or ClearScore). Any errors can take weeks to correct.
• Calculate your deposit — Most lenders cap new build mortgages at 85% LTV for flats and 90% LTV for houses. That means a minimum 10–15% deposit depending on property type.
• Get a mortgage in principle (MIP) — Developers will often require this before they’ll accept a reservation. It’s not a full application, but it shows you’re a credible buyer.
• Speak to a whole-of-market broker — New build mortgage products aren’t always on comparison sites. A broker with new build experience is worth their fee.
• Understand the developer’s timescales — Mortgage offers typically last 6 months. If your build overruns, you may need to reapply — sometimes at a higher rate.

The Key Differences vs. Buying an Existing Home

1. Lower LTV limits Lenders consider new builds higher risk because values can drop immediately after purchase — similar to a new car. Many high-street lenders restrict new build flats to 75–85% LTV. For houses, 90% LTV is more widely available, but 95% LTV deals are rare.

2. Mortgage offer expiry is a real risk Standard mortgage offers last 6 months. New builds regularly overrun. If your completion date slips past your offer expiry, your lender may extend it — or may not. Always ask your lender upfront about their extension policy.

Tip: Some lenders offer 9-month or even 12-month offers specifically for new builds. Ask your broker to prioritise these if your build completion date is uncertain.

3. Valuations can come in below purchase price Developers often sell at a premium. Your lender’s surveyor may value the property below what you’ve agreed to pay. If that happens, your lender will only lend against the lower valuation — leaving you to cover the shortfall in cash or renegotiate with the developer.

4. Incentives can complicate your application Developers commonly offer incentives: cashback, free flooring, stamp duty contributions. Lenders must be told about any incentive worth more than 5% of the purchase price — and some will reduce the amount they’ll lend as a result. Never hide incentives from your lender; it could constitute mortgage fraud.

Schemes Worth Knowing About in 2026

Shared Ownership Available through housing associations, this lets you buy a share (typically 10–75%) of a new build and pay rent on the rest. You’ll need a smaller deposit and a smaller mortgage. Mortgages for Shared Ownership are a specialist product — not every lender offers them.

First Homes Scheme Eligible first-time buyers and key workers can purchase certain new build homes at a minimum 30% discount to market value. The discount stays with the property when you sell. Mortgage lenders must agree to lend on First Homes properties, and most major lenders now do.

Deposit Unlock A mortgage industry scheme (not government-backed) that allows buyers to purchase a new build with a 5% deposit on participating developers’ homes, up to £750,000. Participating lenders include several major high-street names. Check the Deposit Unlock website for the current lender and developer list.

The original Help to Buy: Equity Loan scheme closed in March 2023 and has not been replaced with a like-for-like equivalent. Be wary of any source still referencing it as active.

What Lenders Look At: The Checklist

When assessing your new build mortgage application, lenders will scrutinise:

• Income and affordability — Typically lending 4–4.5x your annual income, though some lenders go higher for strong applications
• Employment status — Self-employed applicants will need at least 2 years of accounts or SA302s
• Deposit source — Gifted deposits are accepted but must be declared with a signed letter confirming it’s not a loan
• Property type — Flats above commercial premises, high-rise blocks (over 6 storeys), and certain construction types (e.g. some modular builds) can be harder to mortgage
• Developer reputation — Some lenders have a panel of approved developers. Less-established developers may face additional scrutiny

Stamp Duty: Know the Numbers

From April 2025, the temporary first-time buyer stamp duty thresholds reverted. In 2026:

• First-time buyers pay no stamp duty on the first £300,000 of a property worth up to £500,000
• Above £500,000, standard rates apply from £0
• On a £400,000 new build, a first-time buyer pays £5,000 in stamp duty (5% on the £100,000 between £300,000 and £400,000)

Always verify current rates with HMRC or a solicitor — thresholds can change with fiscal events.

Practical Tips to Improve Your Chances

1. Lock in your mortgage offer as late as practically possible — reduces the risk of it expiring before completion.
2. Use a solicitor experienced in new build conveyancing — the legal process is different and faster-paced than standard purchases.
3. Read the reservation agreement carefully — understand what you lose if the build is significantly delayed and you need to pull out.
4. Budget for snagging — new builds often have defects. A professional snagging survey (typically £300–£600) before you legally complete can save thousands in remedial work.
5. Check the council tax band — new builds are sometimes provisionally banded, and the final band can be higher than initially indicated.

Where to Get Help

• MoneyHelper (moneyhelper.org.uk) — free, impartial guidance on mortgages and buying a home
• FCA Register — check any mortgage broker or lender is FCA-authorised before proceeding
• The Property Ombudsman — for disputes with estate agents or developers

This article is for informational purposes only and does not constitute regulated financial advice. Mortgage products and eligibility criteria change regularly. Always speak to a qualified, FCA-authorised mortgage adviser before making financial decisions.