Before you begin applying for a new build mortgage it’s important to know what the best interest rate deals are, where to find them and whether there are ways of securing a cheaper rate.
Take a look at our rates table below to get an idea of the kind of mortgage deals currently available for those who are purchasing a new build home.
Looking for more rates and deals?
We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market.
Last updated September 2023
*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 actually right for you and whether you’d qualify for them. Saving you hours of online scrolling and wasted application forms, the best way to do a new build mortgage comparison is to team up with a broker who specialises in new build mortgages.
Up-to-date on the current market trends and in touch with high street and specialist lenders, the brokers we work with 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 securing the best rates for customers just like you.
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Are there specific interest rates for new build mortgages?
Yes, some lenders will offer specific deals for a new build property but others will simply see them as part of their home mover or first-time buyer packages. 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 there’s a possibility that a new build 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 would be able to assess your situation and provide an estimate of the rate you could expect on a new build mortgage.
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Exclusive deals for first-time buyers
There are some new build mortgage deals that are only available to those buying for the first time. They might be offered by the government, mortgage providers or even the housing developers themselves.
Examples of these include:
- First Homes scheme: This is a government scheme that 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 the mortgage size you need and could equate to a lower interest rate.
- Mortgage guarantee scheme: Another government initiative, this 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 there can be in an applicant with such a low deposit and this could potentially influence the interest rate.
- Deposit unlock: When an applicant only has between a 5% and 10% deposit, some lenders allow for the house builder to insure the mortgage. This again reduces the risk for the lender 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.
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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 who has that knowledge and expertise. By using our free broker-matching service, we guarantee you will find an expert with this exact skillset
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 0808 189 2301 or filling out this form and you can be matched to a new build mortgage specialist today.
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