What is a new-build home mortgage?
A new build mortgage is the roughly the same as a mortgage for an existing property except that some lenders could reduce the amount you can borrow as the loan is seen as riskier.
They factor in that the value of the property could fall slightly after purchase as it will no longer be brand new. You may also have to meet tighter deadlines once you have reserved the property. You could also be eligible for so called “green mortgages” that offer incentives for brand new more energy efficient homes.
We have a specialist new build mortgage team who work with the UK’s leading house builders to make sure we can find you a mortgage to meet any timescales agreed with the developer.
Frequently asked questions
Is it harder to get a mortgage on a new build property?
Most lenders will lend on a new build house, but a few will not lend on a new build flat. We can advise on availability before you make your reservation. As with all mortgages you will need to meet the lending criteria.
What is the minimum deposit for a new build property?
It is usually 15% or the purchase price but some lenders will require 25%. There are some schemes available from a selection of lenders such as Deposit Unlock where only a 5% deposit is required. Our specialist advisers can tell you more about this scheme.
Is there an advantage to getting a mortgage for a new-build over an pre-owned property?
The process could be quicker as you can avoid an upward chain, however, if you are buying off plan there could be an issue with delayed completions and the mortgage offer being invalid after three months. If you pull out of the purchase, you could lose the reservation fee paid to the house builder.
Some current top new-build mortgage deals
Standard variable rate 8.39% | Lender arrangement fee £999.00 | Total fees £1,139.00 | Early repayment charge applies until
Your rate of 1.54% will last for the first 24 months of your mortgage (the initial period). During that period you’ll be charged £1,008.13 a month. After that, you’ll switch to the Furness BS’s standard variable rate (SVR) of 8.39%
Standard variable rate 7.74% | Lender arrangement fee £995.00 | Total fees £1,295.00 | Early repayment charge applies until 01-Apr-2027
Your rate of 1.94% will last for the first 25 months of your mortgage (the initial period). During that period you’ll be charged £1,056.54 a month. After that, you’ll switch to the Virgin Money’s standard variable rate (SVR) of 7.74%
Standard variable rate 7.74% | Lender arrangement fee £995.00 | Total fees £1,295.00 | Early repayment charge applies until 01-Apr-2027
Your rate of 1.44% will last for the first 25 months of your mortgage (the initial period). During that period you’ll be charged £996.76 a month. After that, you’ll switch to the Virgin Money’s standard variable rate (SVR) of 7.74%
Why choose The Mortgage Brain?
We have access to over 12,000 mortgage deals with hundreds of lenders
All our advisers are CeMAP qualified to find the most suitable mortgage for you and your circumstances
You can follow your mortgage application every step of the way via our online customer portal
We have thousands of happy customers and have a 5 star rating on Trustpilot and 4.9/5 on Google reviews
Your dedicated adviser will be with you every step of the way, from the initial consultation to the completion of your mortgage
What our customers have to say...
How our expert mortgage advice service works
We’ve made it easy for you to get in touch to start talking about your mortgage.
We know it can be a stressful experience so our expert mortgage advisers are a friendly team and will help you to find the best mortgage deal to suit your own personal situation, whether it’s your first mortgage or you are further up the property ladder. Based on your income and deposit, or equity in your current property, we will show you a range of mortgage options. Once you have decided which one you prefer, we will progress your application with the lender until your mortgage is approved.
It’s a simple and stress-free way to find a mortgage!
Are you ready to secure your new-build home mortgage deal?
Connect with one of our expert mortgage advisers to discuss the right new build home mortgage for you. Click below to book a 30 minute, no obligation, appointment.