What is a new build mortgage?

A new build mortgage isn’t a special kind of mortgage. It is simply a residential mortgage on a new build home.

A house or leasehold flat is classed as a “new build” if it’s been built, converted or refurbished in the past two years.

How to get a new build mortgage

Number 1

Decision in Principle (DIP)

Get a DIP to find out how much you could borrow.

A DIP will also tell you if a lender is likely to lend to you.

You can use it to view properties or put in an offer.
Number 2

Find and secure your home

When you find a home you want, you will need to pay a deposit to the developer to secure it. 

You’ll get a reservation agreement. This tells you how long you'll have to get a mortgage.
Number 3

Apply and get a mortgage offer

When you have a reservation agreement, you can apply for a mortgage.

If successful, you’ll get your mortgage offer within 10-15 working days, after we’ve checked your credit history and valued your property.
Number 4


Once the legal work is done, you’ll exchange contracts and pay your mortgage deposit.

You’ll also agree a completion date.

This is when you’ll receive the keys to your new home.

What deposit do I need for a new build?

We can offer mortgages on new builds if you’ve got a deposit that is at least 15% of the property value. 

How it works

The new build you want to buy costs £200,000
You’ll need a deposit of at least £30,000 to get a mortgage from us
You may also need to pay the developer a deposit to secure your home before applying for a mortgage with us.

Why buy a new build?

  • No chain – You’re the first person to own the home, so there’s no chain to manage.
  • Energy efficiency – New builds are built to be energy efficient. This can mean lower energy bills.
  • Spend less on repairs – A newly built home may mean you spend less on repairs. Some new builds come with a guarantee from the developer.

Considerations with a new build

  • Estate management charges – The company who manages the estate may have yearly charges.
  • Ground rent – Some new builds may require you to pay ground rent every year.
  • Delays – New builds can be delayed, which can mean you aren’t able to move when you wanted to. 

When do you need to start paying a mortgage on a new build?

You will start paying a mortgage on a new build after the mortgage completes.

When do you pay a deposit on a new build?

When you buy a new build, you will pay two different deposits:
  • You’ll pay one deposit to the developer to secure your property. This can be called a reservation fee. How much this costs and when you pay will depend on the developer you pick. The cost of the deposit may be taken off the overall price of the home.
  • You’ll also pay a mortgage deposit. This deposit will be paid through your conveyancers when you exchange contracts.
Acceptable new build warranties are:
  • National House Building Council (NHBC)
  • Premier Guarantee
  • Local Authority Building Control (LABC)
  • Building Life Plans (BLP). These policies are underwritten by Allianz Global but written by BLP
  • Build-Zone
  • Checkmate / Castle 10 (nb. where out buildings such as a detached garage are also being constructed an endorsement to include these in cover is required)
  • Build Assure (New Home Structural Defects Insurance)
  • Global Home Warranties (Structural Defects Insurance)
  • The Q Policy for Residential Properties
  • The Q Policy for Bespoke Properties (detached only)
  • Protek
  • Advantage - There must be no more than 10 units in any continuous structure
  • International Construction Warranties (ICW)
  • Ark Residential New Build Latent Defects Insurance. Where a detached garage/outbuilding has been constructed at the same time as the main building, the policy must include an endorsement confirming cover for the detached garage/outbuilding
  • Aedis (nb. There must be no more than 20 units in the structure)
  • One Guarantee
  • CRL new build 10-year structural defects insurance policy for residential property on new properties, where the insurer is International General Insurance Company (UK) Ltd and Ark have signed the final certificate. Please see the final paragraph on the final certificate. This will confirm Ark details and that they are signing on behalf of the insurers.
Warranties we do not accept:
  • New build properties underwritten by Alpha
  • Second hand properties being sold by first or subsequent owner and property is under two years old. Warranty underwritten by Alpha.

Call us or book an appointment

Speak to one of our friendly advisers about your options.

9am - 5pm Mon-Fri
9am - 1pm Sat