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A Guide to Mortgage Lenders for New Builds

Thinking about a Natwest, HSBC or Halifax New Build Mortgage? Get the right advice about new build lenders here.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Advisor, MD

Updated: June 8, 2022

We get lots of enquiries from customers looking for the best mortgage lenders for new builds. While the number of new build mortgage lenders is growing all the time, some providers are still more wary of recently built properties, and it’s not always easy to know which ones to approach.

If you’ve set your sights on a brand new house or flat and are eager to progress with your application, it’s important to speak to an advisor with access to the entire market as early as possible, as the process of applying for new build mortgages can be complicated by factors such as timing and stricter lending policies.

The experienced advisors we work will be happy to help you navigate the new build mortgage landscape, and guide you towards the best possible rates in your circumstances.

For an initial conversation with no obligation or fee, give us a call on 0808 189 2301 or make an enquiry, and we’ll be in touch shortly.

For general information about new build mortgages, see our guide.

New build mortgage lenders: what you need to know

Generally speaking, lenders take a slightly stricter approach when arranging mortgages for new builds when compared with more lived-in properties, due mainly to the fact that their value is harder to assess.

They are likely to also insist that the property has been built in accordance with one of several building standards indemnity schemes, which give a 10-year guarantee against defects.

What this means in practice is that you may find you qualify for fewer products overall, which can mean higher interest rates and minimum deposit requirements – so it’s especially important to get good advice on which lenders to approach to avoid wasting your time and potentially paying more than you need to.

Some other important points to note about new build lenders include…

  • Some new build mortgage providers are cautious when it comes to lending for leasehold properties and might cap the loan to value ratio at 80-90%.
  • Others might not lend on leasehold homes at all.
  • Some new build homes come with incentives from the developer, including cashback and inclusive Stamp Duty, and certain lenders are wary of offering a loan if these incentives are especially high. If they are more than 5% of the purchase price, your choice of approachable lenders might be slimmer.
  • It is sometimes possible to negotiate a more favourable deal with the developer.
  • Some new build mortgage lenders will check upfront what guarantees the developer is offering (e.g. some new homes come with a ten year NHBC certificate) and will likely need to offer their approval on this as well.
  • Some lenders are happy to lend off-plan (i.e. before the building work has been completed) for new build properties.

How to find the best lenders for new build mortgages

The best way to make sure you get a good deal is to work with an all-of-market broker: not only can they compare all available products quickly, but they can also access specialist new build mortgages that aren’t available directly to the general public, so you won’t be missing out on any ‘hidden’ deals.

Don’t forget that making too many applications in a short space of time can adversely affect your credit score, and this is another important reason that working with an experienced broker is the best course of action, ideally one who already knows which lenders are most amenable to arranging mortgages for new builds.

If you’d like to be put in touch with a broker who specialises in arranging new build mortgages, give us a call today on 0808 189 2301 or make an enquiry and we’ll be in touch to discuss your plans and requirements.

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We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

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Lenders for new builds: what to expect

Customers regularly ask us “which are the best new build mortgage lenders?”, and the answer will depend on your individual circumstances as well as each lender’s attitude towards new builds. In the following section, we’ve provided a brief summary of some of the better-known lenders and their stance on new build mortgages at time of writing.

While this should give you an idea of the degree of variability that exists in this corner of the market, it is only intended as a snapshot of the products that are available, and we would always advise that you speak to an expert for a more complete picture.

Halifax new build mortgage

Halifax currently offers loan to value (LTV) ratios of up to 85% for both new build houses and new build flats, so if you meet their eligibility criteria, you can use one of these products to purchase a new build property with a deposit of 15%.

The New Build mortgages offered by Halifax are not usually available direct to the public, so you will need to go through a broker or other professional intermediary to apply – make an enquiry for specialist advice on how to apply.

Nationwide new build mortgage

Nationwide’s new build mortgages are offered at up to 85% LTV for houses valued up to £1,000,000 (80% if the value is higher) and 75% LTV for all new build flats.

Nationwide recently extended the six-month validity period on its new build mortgages by 45 days (previously, buyers had to request this if they ran out of time), which is intended to allow buyers the additional time they may need to complete their purchase of a new build property.

Barclays new build mortgage

Barclays new build mortgages are available with LTVs of up to 90% on houses and 85% on flats and maisonettes, which means they are one of a fairly small set of high street lenders that will accept deposits of just 10% on new build houses. They allow builder’s cash incentives of up to 5% as a means of part funding the deposit.

However, Barclays 90% new build mortgage is not usually made available direct to the public, so you will need to work with a broker to get access to these products.

Skipton new build mortgages

Skipton offers mortgages on new build houses and flats with LTVs of up to 90%, however, they do not accept builder’s cash incentives to be used towards a deposit in these cases (or in any case where the LTV is higher than 85%).

Accord new build mortgages

Accord is another example of a mortgage provider that will lend up to 90% LTV on new build flats as well as on new build houses, and it also allows buyers to use builders’ cash incentives up to 5% of the property’s value. This lender presents itself as a new build specialist and does not deal directly with the general public.

Leeds building society new build mortgage

Another new build mortgage company offering 90% LTV on new build houses is Leeds Building Society, whose LTV on new build flats or apartments is set at 85%. They state on their website that buyers can request an extension to the mortgage validity period should any issues with the building schedule arise.

Clydesdale bank new build mortgages

Clydesdale bank’s new build mortgages also come in at 90% LTV for houses, with a maximum of 80% for flats.

HSBC new build mortgages

HSBC’s new build mortgages are offered with LTV ratios of up to 85% both for new build houses and new build flats, but as per their standard lending criteria, they won’t accept a deposit of less than £25,000 on mortgages taken out on any property where the LTV is greater than 75%.

While they can accept applications on the basis of properties that are not yet built, HSBC will not release mortgage funds until all work is completed.

Natwest new build mortgage

Natwest’s new build mortgages can be used to purchase houses or flats, with LTVs of up to 85% and 75% respectively.

Natwest recently extended the validity period of its new-build mortgages to 12 months as standard, making it one of the most generous on the market in this respect. Their 95% mortgage products cannot be used when the property being purchased is a new build, however.

Post Office Mortgages new build products

Post Office mortgages will lend on new build flats with up to 80% LTV in certain circumstances only, and has certain restrictions around the type and location of any commercial premises that are acceptable in a mixed-use block. They will lend up to 80% on new build houses in the right circumstances.

Santander new build mortgage

Santander’s new build mortgages are offered at 85% LTV for houses, and 80% LTV for flats. They state that they can consider extending the mortgage validity period in cases where building schedule issues cause the buyer’s anticipated timeline to shift, and have a dedicated team to deal with such cases.

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How to apply for a new build mortgage

While the above lenders all offer new build mortgages, most experts would not recommend approaching them direct, as this will limit you to only one provider’s products, and said provider might not be the right one for a borrower with your needs and circumstances.

Making too many mortgage applications can leave marks on your credit report and potentially jeopardise future applications for finance. Not only can this be avoided if you apply through a whole-of-market broker, but you will also have access to all of the deals you qualify for.

This is the best way to ensure you end up with the best interest rates, plus the brokers we work with can provide you with bespoke advice on new build lenders. They also have deep working relationships with many of them and can introduce you to the right one first time.

In addition to the new build lenders listed above, the advisors we work with have also successfully arranged new build mortgages with the following lenders…

  • Tesco
  • RBS
  • Yorkshire Building Society
  • Aldermore
  • Virgin Money
  • Metro Bank
  • Coventry Building Society
  • M&S
  • Hinckley and Rugby
  • First Direct

Get expert advice in finding a new build mortgage lender

If you’re looking to take out a mortgage on a new build and could benefit from some expert advice with no fee or obligations on your part, give us a call on 0808 189 2301 or send us a message, and we’ll get to work finding the most suitable broker.

We only work with accredited brokers who have a whole-of-market view and a good track record in successfully arranging mortgages for our customers, who have consistently rated us 5 stars on Feefo for service and quality of advice.

Ask a quick question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.

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About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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