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New build mortgage lenders

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Feb 13, 2023

New build mortgage lenders in the UK – Who to use and how to get the best rates

Buying a new home can be an exciting time, and a new build has always appealed to UK residents thanks to all the guarantees that come with a new property.

New build homes are low maintenance, in better shape, and offer buyers a chance to customise their homes to their tastes.

Due to the current persisting low-interest rate environment in the UK, now is a great time to obtain mortgage finance.

However, organising a new build mortgage can present many challenges, such as the timing of your application and strict lending policies. There are several things new build buyers should be aware of before parting with their deposit.

Before jumping into the application, you should first speak with a loan advisor with access to the entire market.

Find out which lenders offer mortgages for new build properties, what to expect when arranging a new build mortgage, and which one is right for you.

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New build mortgage lenders: What you should know

If you have your eye on a new build property, it’s worth noting that the mortgage process can often be more complicated than for an older/lived-in property, specifically if you’re buying off-plan.

It’s important to seek advice to know the factors that can affect your ability to get a new build mortgage. You can use our new build mortgage calculator for indicative rates.

Here are a few key things you should know when looking into new build mortgages.

Mortgage lender criteria is stricter for new builds

The approach to new build homes varies from lender to lender, with some having stricter approaches than others since new built properties are harder to assess. Some may be happy to loan, while others refuse applications.

When buying a new build home instead of an older one, you’ll find that mortgage lenders often ask for a higher deposit up-front. This is because there is a risk that the new property’s value could decrease in its first few years.

If this were to happen, the lender would have less security for its loan. Sometimes higher deposits are required for first time buyers of new builds, but the government does offer some good incentives to help with deposits.

If you’re looking to buy a new build property off-plan, it could be more difficult to get a mortgage than for one that has already been built. There are additional risks for both the purchaser and the mortgage lender, who might not be willing to give the purchaser a favourable mortgage deal.

Moreover, buying an off-plan means that the mortgage offer will likely only be valid for six months. Should the property development take longer, you may need to reapply for the loan and have your affordability reassessed.

No matter whether the value of the property increases or decreases during the build phase, you’ll still need to pay the agreed original purchase price when it’s completed. This is why it’s so important to source great advice on which lenders to approach to avoid the hassle and potentially overpaying.

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What to look for in a new build mortgage lender?

If you’ve decided to buy a new home, you now need to find the right lender to make it happen. But finding the best lender for new build mortgages is not so easy.

Comparing new build mortgages is complicated, and can take a great deal of time searching to find a good mortgage deal. Even when you think you’ve found one, how can you be sure whether the deal suits your circumstances and that the valuation is right for the property?

Working with a whole-of-market mortgage broker is best to ensure you get a good mortgage deal. Working with a whole-of-market broker means you’re not limited to a single or small group of lenders but rather have a much broader range of mortgage options.

While potential new-build home buyers can go directly to any lender for a loan, some lenders may only work through a mortgage broker. So, if the lender you prefer is among those, you’ll need to use a mortgage broker.

Before applying and seeking mortgage pre-approval, you must ensure you’re financially ready to take on a loan and get the best mortgage deal possible. Prepare by checking and improving your credit score, saving for your down payment, and ensuring your income is stable.

These all factor into finding a lender that is willing to offer you a good and reasonable deal.

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New build mortgage lenders in the UK

When choosing a new-build mortgage lender, the right one will depend on what you’re looking for, your circumstances, and the lender’s standpoint on new builds.

Different lenders will have varying criteria for which properties are defined as new build properties. Here are some reputable lenders and their approaches to new build mortgages.


Nationwide offers up to 75% Loan-to-Value (LTV) for new build flats with a maximum loan of £5 million and 85% LTV new build homes with a maximum loan of £1,5M.

Nationwide’s offers are valid for 180 days (six months). Furthermore, they have a 45-day extension for new build mortgages, allowing buyers who may need additional time to complete a purchase of a new build property.


Santander’s new build mortgages are offered with LTV ratios of up to 85% for new build homes and 80% for new build flats. With a Help to Buy Equity Loan, it can go up to 95% LTV for both houses and flats.

Santander’s mortgage offers are valid for six months; however, they will consider an extension should you need it by re-scoring the case and making sure you still meet their lending policy and affordability assessment.


Barclays offers a great LTV on new build mortgages with 90% on houses and 85% on flats and maisonettes. Their mortgage offers are valid for six months and can be extended for a further six months without full resubmission.

They also provide support for the Help to Buy scheme.


UK’s leading lender, Halifax, recently launched new build mortgages with 95% LTV. The change applies to new build homes and bungalows, while the maximum for new build flats will remain at 85% LTV.

New build purchases above 90% LTV will be available under the Mortgage Guarantee Scheme.


HSBC new build mortgages are available with LTVs of up to 85% for houses and 80% for flats and maisonettes. The only downside is the condition that if an LTV is higher than 75%, a minimum £25,000 deposit is required.

HSBC approves mortgages on properties not yet built but will only release the funds until the property has been completed.


NatWest defines a new build property as something that is first occupied in its current state or significantly altered, modernised or refurbished within the last two years.

They offer new build mortgages with LTVs up to 75% for flats and 85% for houses (75% for mortgages over £1m). Their offer period is the most generous on the market, with mortgage validity of up to 12 months on new build properties.

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Applying for a new build mortgage: How it works

The application process for new build mortgages is the same as for any other type of mortgage. However, the timing is incredibly important – particularly if you’re buying an off-plan.

A mortgage offer from most lenders will have a validity period of six months, so arranging a mortgage too early can result in your application expiring. Similarly, leaving it too late can cause multiple complications.

Typically, mortgage providers place a six-month deadline on their offers, but this varies from provider to provider, so always check before making your application. Otherwise, you may need to reapply for a mortgage with no guarantee that you’ll land the same new build mortgage rates again.

While several other factors could complicate the process, a significant factor is a potential change in the value of the new build you’re purchasing. The lender has the right to withdraw their offer should the value change between the time of placing an offer and buying the property.

A key tip is to arrange a mortgage before you begin your home search, which allows you to work with a budget and confidently make buying decisions.

First-Time Buyers

If you’re a first-time buyer, you may be eligible for help with a government-backed Help to Buy Equity Loan scheme. This loan scheme helps first-time buyers get on the property ladder by providing them with up to 20% (40% in London) of the value of a new build home that’s interest-free for five years.

The property you are buying must be your main residence, not a new build Buy to Let property, and must cost no more than £600,000 with a deposit of 5% of the property price.

To capitalise on this scheme, first-time buyers will have to reserve a new build property with a homebuilder registered with the scheme, as well as apply online with a Help to Buy agent.

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Pros & cons of buying a new build home

When deciding whether you should buy a new build or older property, it’s important to weigh the pros and cons of each. You need to consider what is important to you as a homeowner and which type of property ticks the right boxes for you.

Benefits of New Build Houses

  • Brand new and low maintenance: As you’ll be the first person to live in the home, it will be in pristine condition, meaning repair and maintenance costs will be lower.
  • Customisable: You may be able to customise the interior and exterior of your home with your desired fixtures and fittings.
  • Energy-efficient: New build homes tend to be more energy-efficient than older properties.
  • Warranties: New build houses typically come with a warranty, such as the National House Building Council 10-year certificate which protects you if there are any defects in the building work.
  • Chain-free: You can avoid the costly delays of a regular house-buying process like a property chain.
  • Incentives: Some developers may offer discounts or financial incentives such as covering the flooring cost or paying your stamp duty.


Drawbacks of New build houses

  • Higher cost: New build properties tend to be more expensive than older properties, not just in list price but also in price per square foot.
  • Complicated legal work: The legal process behind securing a mortgage for new build houses can be more complex.
  • Delays: If you’re buying off-plan, you might experience setbacks in the property being built, meaning your mortgage offer could expire before the build is completed.
  • Off-plan property complications: An off-plan property can go down in value before it’s completed. However, you’ll still have to pay the price you agreed, and your mortgage provider may not lend you what you need.
  • Reservation fee: To secure a property, a developer will likely ask for a reservation fee, which you can lose if you can’t or no longer want to go through with the purchase.
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Find the right new build mortgage with Loan Corp

Getting a foot on the property ladder for new build homes can be tough, but it doesn’t have to be. With a mortgage brokerage like Loan Corp, you can easily navigate every stage of finding and applying for a new build mortgage quickly and efficiently.

We take the hard work out of getting finance by providing you with free advice and expert brokers that meet your requirements.

With over 200 lenders on our panel, we can find one that offers the best mortgage deal depending on your priorities. Start the process online or speak to one of our expert mortgage brokers for free today!

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How quickly can I get a new build mortgage?

Typically, it takes 2-6 weeks to get a mortgage approved. The mortgage application process can be expedited by going through a mortgage broker who can find you the best deals that suit your circumstances. Although a mortgage, in principle, can be provided within a day, a formal mortgage application can take weeks.

Is it possible to find 90% LTV new build mortgages?

While some lenders may restrict their new build LTV offers due to the extra precautions they take with new builds, lenders like Barclays and Halifax offer 90% LTV new build mortgages. A great tip for securing a competitive mortgage rate is to save more than a 10% deposit before applying for a new build mortgage.


We can help you access the best new build mortgage lenders in the UK below:

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