New Build Mortgages

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What is a new build mortgage?

New build mortgages are specially designed for you to purchase a property that has just been constructed, they can also apply to certain properties that have had extensive renovation works carried out in the last two years.

New build mortgages vary from lender to lender and some have rules on the minimum deposit you need to purchase one. The rules also vary depending on whether you are purchasing a new build house or a flat/apartment.

Although new build mortgages may have specific rules, there are lots of good reasons to consider a new build property. Take a look below at some of the advantages.

New build advantages.

Warranties are provided

A key advantage of buying a new build is the added peace of mind that you are covered under a developer warranty. Most builders will offer a 10 year guarantee covering the construction of the property. In addition, many also allow a period after you get the keys to fix any minor issues, this is known as the ‘snagging period’.

Make it yours

If you reserve your plot early enough (typically before the roof goes on the building), you will have the option to spec the property to your needs. Upgrade kitchens, bathrooms, bedroom storage, flooring or even add extra lights or sockets where you would need them. Developers will have a price list and you’ll normally have a meeting to talk ‘extras’.

No chains

A huge benefit of purchasing a new build is the reduced risk of things not quite going to plan. If you buy a second hand home, you’ll usually be in a ‘chain’. A chain is the name given to the number of people co-dependent on each other to complete on a purchase. With a new build it’s just you (if your a first time buyer) and the developer.

Energy efficient homes

New build homes are built to tight government guidelines around energy efficiency. Nowadays, most new builds have an EPC (energy performance certificate) rating of B, meaning reduced running costs. There are also specific mortgages for energy efficient homes that can have lower rates or enhanced cashback on completion.

Warranties are provided

A key advantage of buying a new build is the added peace of mind that you are covered under a developer warranty. Most builders will offer a 10 year guarantee covering the construction of the property. In addition, many also allow a period after you get the keys to fix any minor issues, this is known as the ‘snagging period’.

Make it yours

If you reserve your plot early enough (typically before the roof goes on the building), you will have the option to spec the property to your needs. Upgrade kitchens, bathrooms, bedroom storage, flooring or even add extra lights or sockets where you would need them. Developers will have a price list and you’ll normally have a meeting to talk ‘extras’.

No chains

A huge benefit of purchasing a new build is the reduced risk of things not quite going to plan. If you buy a second hand home, you’ll usually be in a ‘chain’. A chain is the name given to the number of people co-dependent on each other to complete on a purchase. With a new build it’s just you (if your a first time buyer) and the developer.

Energy efficient homes

New build homes are built to tight government guidelines around energy efficiency. Nowadays, most new builds have an EPC (energy performance certificate) rating of B, meaning reduced running costs. There are also specific mortgages for energy efficient homes that can have lower rates or enhanced cashback on completion.

New build buying schemes

There’s a range of schemes available that can help you purchase a new build property. Some help with a reduced deposit, whilst others can reduce your monthly outgoings for the property. Take a look below at your options.

Shared Ownership

This scheme can help those that either haven’t saved up a big deposit, or those who can’t borrow enough to purchase at a full market price.

You would purchase a share of a property (typically 25% to 75% of the full market value) and pay an agreed rent each month on the remaining share of the property you do not own.

There are criteria you need to meet in order to qualify for the scheme such as:

You’re a first time buyer or you used to own a home but cannot afford to buy a new one at full market value.
Your household income is £80,000 a year or less (£90,000 in London)

Example
if the property was £200,000 and you purchased a 25% share (£50,000), subject to qualification you could purchase the home for as little as £2,500 up front (5% deposit). You would then pay rent on the remaining £150,000 share, along with your mortgage payments to borrow £47,500.

For the full breakdown on Shared Ownership mortgages, take a look at the .GOV page below.

Find out more

Own New

The Own New Rate Reducer a scheme designed to help you adjust to the higher costs of owning your own home. For qualifying home builders that are signed up to the scheme, the builder will make a contribution to your lender (typically 3-5% of the purchase price). This contribution is then used by the lender to reduce your initial interest rate (e.g. first 2, 3 or 5 years).

You retain 100% ownership of the property.

Your adviser will calculate whether this scheme is beneficial for you based on your overall aims and objectives.

Potential Impact
Where an average interest rate for a 10% deposit mortgage (fixed for 2 years) could be 4.58%, with rate reducer, this could be reduced to just 1.93% for the initial 2 year period.

*Average interest rates sampled 22.01.2026 from Own New.

Find out more

First Homes

The First homes scheme helps first time buyers acquire a property that they could now purchase at full market value.

As part of the scheme you would purchase a qualifying property from a participating new build developer for 30%-50% less than it’s market value.

You can buy the property from:

A new build developer
Or through an estate agent for second hand homes that were initially purchase under the scheme.

The reduction in price stays with the property, so you will also sell the property at the same discount to the future value to help someone else get on the ladder.

To qualify, you must:

be a first time buyer
be able to get a mortgage for at least half of the full market price
not earn more than £80,000 a year before tax (£90,000 if the property is in London)

Some councils may also set eligiblity criteria such as having connections to the area or being a key worker.

For full details, click below to find out more.

Find out more

Developer Incentives

Some developers may offer an incentive to help you purchase the property. This could be money towards your deposit (typically 5%), help with paying your stamp duty, or some offer vouchers towards making the house yours and customising the plot. Not all developers offer this and where they do, it’s usually on select plots. Be sure to ask the developer if they have any offers available.

Shared Ownership

This scheme can help those that either haven’t saved up a big deposit, or those who can’t borrow enough to purchase at a full market price. You purchase a percentage of the property, and pay rent for the part you don’t own. You can buy more over time (known as staircasing).

Find out more

Own New

The Own New Rate Reducer a scheme designed to help you adjust to the higher costs of owning your own home. Your qualifying new build developer will provide an incentive that is paid to the lender to reduce your initial fixed interest rate.

Find out more

First Homes

The First homes scheme helps first time buyers acquire a property that they could now purchase at full market value.

As part of the scheme you would purchase a qualifying property from a participating new build developer for 30%-50% less than it’s market value.

Find out more

Developer Incentives

Some developers may offer an incentive to help you purchase the property. This could be money towards your deposit (typically 5%), help with paying your stamp duty, or some offer vouchers towards making the house yours and customising the plot. Not all developers offer this and where they do, it’s usually on select plots. Be sure to ask the developer if they have any offers available.

Ready to explore?

Not ready for a full consultation but want to get an idea of your options? Take a look below at the areas you can explore before speaking to us.

Brush up!

There’s lots to learn when buying a new build property. Your adviser will run through all of this and answer any questions you have. Before that, take a look at our useful articles to brush up on all things ‘new build. We’ve included some key articles below to get you started.

Learn

Explore calculators

Our handy calculators can give you an insight into potential repayments, stamp duty liability and give you a basic idea of what you could borrow. If you’re trying to get your property portal price range, here is a good starting point.

Calculators

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Feel like you’re ready to look at some more tailored options? Use our mortgage finder to create your own tailored deal with a few personal details. Once you’re ready, you can request a call back to see if you qualify.

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