New Build Mortgages
New build purchases run on developer deadlines. Your mortgage needs to keep up.
Buying a brand-new home has real advantages (warranties, energy efficiency, no chain below you). It also has its own mortgage wrinkles. Developers commonly want exchange within 28 days, lenders treat new builds differently from older stock, and offers need to survive a build that might complete months later.
I handle new build purchases regularly for clients across the UK, keeping the mortgage moving at developer pace without letting the deadline pressure push you into the wrong deal.
What working together looks like
Built for the 28-day sprint
Most developers expect exchange within about four weeks of reservation. I line up the application, valuation and paperwork immediately so the deadline is met without settling for whichever lender happened to be quickest.
Lenders who like new builds
Lenders cap how much they'll lend on new builds differently (flats are treated more cautiously than houses) and their appetite varies. I place your case where new build criteria work in your favour.
Offers that survive the build
Buying off-plan means your mortgage offer must last until the home is finished. I use lenders with longer offer validity and extension options, so a delayed completion doesn't send you back to square one.
New build specifics worth knowing
Deposits are often higher on flats
Many lenders want a larger deposit for a new build flat than an equivalent older property, commonly 15% or more, while new build houses are treated closer to normal.
Incentives are counted
Cashback, paid stamp duty or upgrades from the developer must be declared, and beyond a threshold lenders may reduce what they'll lend. Factor incentives in properly rather than treating them as free money.
The valuation is on today's price
Lenders value what you're paying now. On off-plan purchases in a moving market, that's usually fine, but it's why realistic pricing matters more than the show home's sparkle.
Snagging and retention
Occasionally a valuer notes unfinished work and the lender holds back part of the loan until it's done. Rare, but worth knowing the mechanism exists.
Asked all the time, answered honestly
How quickly do I need my mortgage sorted after reserving?
Most developers ask for exchange of contracts within 28 days of reservation, which means the mortgage application needs to go in essentially straight away. Having an agreement in principle before you reserve makes the whole timeline comfortable.
What happens if the build is delayed past my mortgage offer?
Offers typically last around six months, and some lenders offer longer validity for new builds or straightforward extensions. If a build overruns badly, the worst case is reapplying. I pick lenders at the outset to make that outcome unlikely.
Are developer incentives a problem for the mortgage?
Not usually, but they must be declared on the lender's disclosure form, and if the total incentive package exceeds around 5% of the price, some lenders adjust what they'll lend. I check how your lender treats your specific package.
What is Deposit Unlock?
A scheme developed by housebuilders and insurers letting you buy a new build with a 5% deposit, with the developer paying to insure the lender against loss. Only some lenders and developments take part, so it's worth checking early if a small deposit is the constraint.
Is a new build worth more or less once I move in?
Like a new car, a brand-new home can carry a small premium that softens on day one, though energy efficiency and warranties offset real running costs. It matters most if you might sell within a couple of years, and it's a fair part of an honest affordability conversation.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Let's talk about new build
A free, no-obligation chat is the easiest first step. Tell me what you're hoping to do, and I'll tell you honestly how I can help.