New build mortgage help
A new build home is one that has just been built and hasn’t yet been lived in by anyone. Sometimes these properties are sold “off-plan”, which means you commit to buying before construction has started or while the property is still being built.
Many lenders are cautious about new builds, particularly flats, so the deposit you have and the type of property can make a big difference to your options. Most lenders ask for at least a 10% deposit on new builds, although some will lend at up to 95% loan-to-value (a 5% deposit) on selected new-build houses. Availability is narrower than for existing homes, which is where a broker can help.
The government’s Mortgage Guarantee Scheme, launched as a permanent scheme in July 2025, encourages lenders to offer 95% mortgages. Not every lender on the scheme accepts new builds, and some exclude new-build flats, so it matters which lender you apply to. Many lenders also offer 95% mortgages outside the scheme.
If you already have a Help to Buy equity loan from a previous purchase, we can also advise on remortgaging and on repaying or staircasing your loan.
New Build Mortgages
Buying a new build home is an exciting step, whether you are purchasing your first property or moving somewhere new. Arranging the mortgage can involve additional considerations, including developer deadlines, deposit requirements and making sure your mortgage offer remains valid until your home is ready.
At The Residential Mortgage Hub, we help you understand your options and find a suitable mortgage for your circumstances. From reserving your property to receiving the keys, our advisers guide you through the application and keep you informed along the way.
Book an appointment to discuss your new build mortgage.
What is a new build mortgage?
A new build mortgage is a mortgage used to buy a newly built property. You may be purchasing a completed home or buying off-plan, before construction has finished.
Many lenders offer mortgages for new build homes, but their criteria can differ from those for older properties. The deposit required, property type, developer incentives and expected completion date can all affect your options.
Lenders also have their own definitions of a new build property. A recently completed home or conversion may fall within their new build criteria, even if some work finished several months ago.
How much deposit do you need for a new build home?
Some lenders offer new build mortgages with a deposit of just 5%, subject to eligibility, affordability and the property meeting their requirements.
However, the minimum deposit varies between lenders. New build flats can require a larger deposit than houses, and the loan amount or any developer incentives may also affect how much you can borrow.
A larger deposit may give you access to a wider choice of lenders and mortgage products.
We can assess your deposit, income and chosen property to explain which options may be available before you commit to a purchase.
Find out more in our Mortgage Deposit Guide.
Buying a new build home off-plan
Buying off-plan means agreeing to purchase a property before it is finished. You may choose your home using plans, specifications and a show home rather than viewing the completed property.
The main mortgage consideration is timing. Your mortgage offer must remain valid until you can complete the purchase, and construction delays can affect that date.
Some lenders offer longer validity periods for new build mortgages. Others may consider an extension, subject to their requirements. An extension is not guaranteed, and further checks or a new application may be needed.
We help you choose a lender with an offer period suited to the expected build schedule and monitor the position as completion approaches.
Developer incentives and your mortgage
Developers may offer incentives such as a contribution towards your deposit, legal fees, cashback or upgraded fixtures and fittings.
These offers can be useful, but lenders treat incentives differently. Some may affect the maximum mortgage available, particularly when you are buying with a smaller deposit.
Tell your mortgage adviser and solicitor about every incentive included in the purchase. This allows the lender to assess the application using the full details of the agreement.
Before accepting an incentive package, we can check how it may affect your mortgage options.
How does the new build mortgage process work?
1. Understand your budget
Speak to a mortgage adviser before reserving a property where possible. We can review your income, commitments and deposit, explain your potential borrowing and help you obtain an Agreement in Principle.
An Agreement in Principle gives an indication of what a lender may lend. It is subject to a full application, underwriting and assessment of the property.
2. Reserve your new home
Once you have chosen a property, the developer may ask for a reservation fee and set a deadline for exchanging contracts.
Check the reservation agreement carefully, including the deadline and the circumstances in which the fee is refundable. Your solicitor can explain the legal terms.
3. Apply for your mortgage
We recommend a suitable mortgage and submit your application with the supporting documents.
The lender assesses your finances and arranges a valuation of the property. For an off-plan purchase, this may involve assessing the plans and specifications.
4. Receive your mortgage offer
If the application is approved, the lender issues a formal mortgage offer.
Your solicitor checks the legal position, including the contract, ownership arrangements, relevant planning documents and new home warranty.
5. Exchange contracts and complete
Your solicitor guides you through exchanging contracts and explains when you become legally committed to the purchase.
For an unfinished property, completion may take place later once the home is ready. We stay in contact with you and the relevant parties to help keep the mortgage arrangements on track.
Why choose The Residential Mortgage Hub?
Our advisers understand that a new build purchase needs careful coordination between the buyer, lender, developer and solicitor.
We can help with:
- Comparing suitable mortgage options from a broad range of lenders.
- Checking deposit requirements for new build houses and flats.
- Understanding how developer incentives affect your application.
- Choosing an appropriate mortgage offer period for an off-plan purchase.
- Presenting employed, self-employed, contractor or complex income to suitable lenders.
- Managing the mortgage application and keeping you updated.
Whether you are a first-time buyer or moving home, we explain your options clearly so you can make an informed decision.
Explore our First-time Buyer Guide or meet our team.
New Build Mortgages: Frequently Asked Questions
New Build: Frequently Asked Questions
Can I buy a new build home with a 5% deposit?
Some lenders accept a 5% deposit on eligible new build properties.
Availability depends on the lender, property type, loan amount and your financial circumstances. New build flats may require a larger deposit than houses.
We can check which lenders may be suitable for your chosen property.
Are mortgage rates different for new build homes?
Some lenders offer their standard residential mortgage products for new build purchases, while others have specific products or requirements.
The rate available depends on factors including your deposit, loan amount, financial circumstances and the lender’s criteria.
We compare the overall cost of suitable products, including the interest rate, fees and any relevant benefits.
How long does a new build mortgage offer last?
Mortgage offer periods vary between lenders and products. Some lenders provide longer offer periods for new build purchases to allow for construction.
We check the offer expiry date against the developer’s expected completion date and explain what may happen if the build is delayed.
What happens if the property is not ready before my mortgage offer expires?
Contact your mortgage adviser as soon as you become aware of a delay.
Depending on the lender, it may be possible to request an extension. Further affordability checks, updated documents or a new valuation may be required.
If an extension is unavailable, you may need a new mortgage application. The available rates and your eligibility could have changed.
Can the developer contribute towards my deposit?
Some lenders accept developer contributions, but restrictions apply and the contribution may affect the maximum loan available.
A developer contribution is treated differently from a gift from a family member. We can check the lender’s requirements before you agree to the arrangement.
Do I have to use the developer’s mortgage adviser?
You can choose your own mortgage adviser.
Using an adviser of your choice allows you to discuss your circumstances, compare suitable options and understand the mortgage recommendation before proceeding.
Can I get a new build mortgage if I am self-employed or a contractor?
Yes, being self-employed or working as a contractor does not automatically prevent you from obtaining a new build mortgage.
Lenders assess income differently. Your trading history, accounts, tax calculations or contract details may influence which lender is suitable.
Our advisers can explain the documents required and help you explore the available options.
Do I need a survey on a new build property?
The lender’s valuation is carried out for the lender and is not a detailed assessment of the property’s condition.
You may wish to arrange an independent inspection or snagging survey to identify defects or unfinished work. Discuss the appropriate inspection and timing with a qualified surveyor and your solicitor.
Read our House Survey Guide for more information.
What happens if the lender values the property below the purchase price?
A lower valuation can affect how much the lender is willing to offer.
You may need to renegotiate the purchase price, increase your deposit or review your mortgage options. We can explain the implications and discuss the next steps with you.
What other costs should I budget for?
Alongside your deposit, allow for legal fees, any applicable property purchase tax, mortgage fees, moving costs and any independent inspections.
You should also check ongoing costs such as service charges or estate management charges. Your solicitor can explain any charges attached to the property.
Speak to a New Build Mortgage Adviser
Whether you are considering a new build house, a flat or an off-plan purchase, we can help you understand your budget and mortgage options.
Speak to The Residential Mortgage Hub before reserving your property, or contact us if you have already found your new home.
Book an appointment to discuss your new build mortgage.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount will depend upon your circumstances.
There is no fee for initial mortgage advice before application. A fee may be payable if you decide to proceed, depending on your individual circumstances. Any fee will be discussed and agreed with you before you proceed.