New Build Mortgages

New Build Mortgages — Expert Advice for Off-Plan & New Properties

New build mortgages are more complex than standard purchases. From exchange deposit requirements to mortgage offer validity periods, we manage every detail so your purchase stays on track.

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Why new builds need specialist mortgage advice

New build mortgages have challenges that standard residential purchases simply do not.

Offer validity management

We apply to lenders offering the longest validity periods and manage extension requests before they become an issue.

Off-plan expertise

We understand the timelines involved in off-plan purchases and time your application to align with your expected completion.

Builder incentive handling

We disclose incentives correctly and find lenders who treat them most favourably within regulatory requirements.

Leasehold awareness

We flag leasehold issues — including ground rent, service charge, and lease length concerns — before they delay your purchase.

Delay contingency planning

We plan for construction delays from the outset and ensure your mortgage strategy accommodates them without additional cost.

New build mortgages: what you need to know

New build properties — whether a newly completed home or an off-plan purchase — require a different approach to mortgages than buying an existing property. Lenders treat new builds differently in terms of maximum loan-to-value, valuation methodology, and mortgage offer validity, and the purchase process itself involves unique risks around construction timelines and builder practices.

Exchange deposit requirements

When buying a new build — especially off-plan — you will typically be asked to exchange contracts and pay a reservation deposit (usually £1,000–£2,000) and then an exchange deposit of 5–10% of the purchase price before the property is built. This deposit is held by the developer and the mortgage funds are only drawn down at completion. You need to have the exchange deposit available as cash — it cannot come from your mortgage.

Mortgage offer validity periods

Standard mortgage offers are valid for 6 months from issue. New build completions are frequently delayed, which means your offer may expire before you can complete. Most lenders offer at least one 3-month extension free of charge, but some new build specialist lenders offer initial validity of 9–12 months. We select the right lender and manage all extension requests to ensure you are never left without a valid offer.

Builder incentives and lender restrictions

Developers frequently offer incentives — cashback, stamp duty contributions, upgraded specifications, or discounted parking. Lenders require these to be disclosed and most restrict total incentives to no more than 5% of the purchase price. Incentives above this threshold are deducted from the valuation figure, effectively increasing your LTV and potentially reducing what the lender will lend. We ensure all incentives are declared and managed correctly.

Developer-recommended solicitors: a warning

Many developers actively recommend (and sometimes offer incentives to use) their own panel solicitors. While this can speed things up, developer-recommended solicitors work primarily in the developer's interest — not yours. We recommend using an independent conveyancer who acts solely on your behalf, particularly for reviewing the lease (for leasehold properties), ground rent clauses, and service charge provisions.

Leasehold vs freehold new builds

New build flats are almost always leasehold. New build houses are increasingly being sold as freehold, though some developers still use leasehold arrangements. For any leasehold new build, we strongly recommend your solicitor reviews the lease carefully — particularly the ground rent (which should ideally be peppercorn or zero), service charge cap, and any restrictions on subletting or alterations. Some lenders will not lend on new build leasehold properties with certain ground rent clauses.

Construction delays and what to do

Delays are common in new build purchases. If your completion is delayed beyond your mortgage offer's validity period, we request an extension from the lender. If rates have changed significantly and the original product is no longer available, we will re-assess the market and find you the best available deal at the time of extension. Planning for delays from the outset — both financially and practically — is the best approach.

New build mortgage FAQs

Why do new build mortgages need specialist advice?
New build mortgages have unique challenges that standard residential mortgages do not — including shorter valuation lifespans, mortgage offer validity periods, exchange deposit requirements before completion, restrictions on builder incentives, and the risk of construction delays. An experienced broker navigates all of these on your behalf and knows which lenders are most accommodating for new build purchases.
What if my mortgage offer expires before the property is completed?
Standard mortgage offers are typically valid for 6 months. Many new build completions are delayed beyond this, especially for off-plan purchases. Most lenders offer at least one free extension of 3 months, and some specialist new build lenders offer 12-month validity periods from the outset. We apply to lenders with the most suitable offer validity for your expected completion date and manage any extension requests proactively.
Can I use builder cashback or incentives as part of my deposit?
Builder cashback and incentives are treated with caution by mortgage lenders. Most lenders require any incentive above 5% of the purchase price to be deducted from the loan-to-value calculation — meaning it reduces the effective value the lender is willing to lend against. We disclose all builder incentives correctly and identify which lenders are most accommodating. Using incentives to inflate your deposit is not permitted and risks mortgage fraud.
How much deposit do I need for a new build mortgage?
Most mainstream lenders require a minimum 10% deposit for new build properties (compared to 5% for some existing properties). This is because new builds carry a premium over comparable second-hand properties, and lenders apply a more conservative approach to new build valuations. Flats, in particular, often require a minimum 15–20% deposit due to leasehold and valuation risk factors.
What about off-plan purchases — when do I need the mortgage offer?
For off-plan purchases, you typically exchange contracts and pay a deposit (usually 5–10% of the purchase price) well before completion — sometimes 12–24 months in advance. The mortgage offer is needed closer to completion. We time the formal mortgage application appropriately, apply to lenders with the right offer validity, and monitor your completion timeline throughout to ensure your mortgage is in place when you need it.

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Buying a new build? Get expert mortgage advice today.

We manage every step of your new build mortgage — from exchange deposit to completion and beyond.

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Your home may be repossessed if you do not keep up repayments on your mortgage.