Best New Build Mortgage Rates Compared

Before you apply for a new-build mortgage, it’s important to know the best interest-rate deals, where to find them, and whether there are ways to secure a cheaper rate.

Take a look at our rates table below to get an idea of the mortgage deals currently available for those purchasing a new-build home.

*All of the rates and terms above are purely for example purposes, were correct when we updated this article and are subject to change at any time at the lender’s discretion*

How to compare new build mortgage rates

Doing an Internet search for ‘best new build mortgages’ will bring up an endless list of options, but it’s difficult to know if such deals are right for you and whether you qualify. Saving you hours of online scrolling and wasted application forms, collaborating with a broker who specialises in new build mortgages is the best way to do a new build mortgage comparison.

The brokers we work with are up-to-date on current market trends and in touch with high street and specialist lenders. They can source the best deal for you, advise on any additional support you might be eligible for, and help you compile a stronger application so that you’re more likely to get the rate you want.

Make an enquiry, and we’ll match you with a broker who arranges new-build mortgages every day and has a strong track record of securing the best rates for customers like you.

Are there specific interest rates for new build mortgages?

Yes, some lenders will offer specific deals for new-build properties, but others will simply see them as part of their home mover or first-time buyer packages. The tailored interest rates that lenders offer for new-build mortgages can be slightly higher than the rates for other types of properties, and that’s because a new-build property could quickly lose its value.

Whether you’ll be at the higher or lower end of the rates scale will depend on multiple factors, including your credit history, deposit, and income. A mortgage broker can assess your situation and provide an estimate of the rate you could expect on a new-build mortgage.

Exclusive deals for first-time buyers

Some new-build mortgage deals are only available to first-time buyers. They might be offered by the government, mortgage providers, or even the housing developers themselves.

Examples of these include:

• First Homes scheme: This government scheme allows first-time buyers in England to purchase a new build or a home originally part of the scheme at between 30% and 50% lower than its market value. This would lower your mortgage size and could equate to a lower interest rate.
• Mortgage guarantee scheme: Another government initiative allows those with as little as 5% saved as a deposit to obtain a mortgage. The government offers lenders a guarantee to mitigate some of the risk associated with an applicant with such a low deposit, which could potentially influence the interest rate.
• Deposit unlock: When an applicant has only a 5% and 10% deposit, some lenders allow the house builder to insure the mortgage. This again reduces the lender’s risk and could impact the rate they offer.
• Developer deals: Some developers, at their own discretion, offer various discounts to new-build buyers, including those who are buying for the first time. Barratt Homes, for example, can boost a 10% deposit by 5%, Persimmon Homes can cover up to 10 monthly mortgage payments, and Taylor Wimpey could contribute up to £12,000 towards a mortgage.

Other options worth considering include a guarantor mortgage, Shared Ownership mortgage or a Lifetime ISA.

Why use Online Mortgage Advisor?

The only way you can be sure you’ve got the lowest new build mortgage rate on the market is by working with an expert with that knowledge and expertise. Using our broker-matching service, we guarantee you will find an expert with this exact skill set.

Brokers specialising in new build mortgages can sift through the numerous deals, find one that’s right for you and support you in your application so that your chances of locking that deal in are higher. They’ll be able to eliminate hours of searching through rates tables and potentially save you from paying more for your new build mortgage in the long term.

Reach out today by calling 0330 818 7026 or filling out this form, and you can be matched to a new-build mortgage specialist.