New Build Mortgages
Buying a newly built property can be exciting, but the mortgage process can sometimes feel more complex than with an existing home. From developer deadlines to lender criteria, there are several factors to consider when arranging a new build mortgage.
Flagstone provides independent, whole-of-market mortgage advice for new build homes, helping buyers navigate deposits, incentives and lender requirements. Whether you are purchasing a newly built house or a new build flat, our advisors will guide you from the first conversation through to completion.
What is a new build mortgage?
A new build mortgage is a mortgage used to buy a property that has recently been built or newly converted by a developer.
These mortgages can apply to both houses and flats purchased directly from developers. However, lenders often apply different criteria compared with standard residential mortgages. This can include stricter loan-to-value limits, different valuation approaches and shorter mortgage offer validity periods.
Getting the right mortgage for a new build early in the process can help avoid delays once construction is complete.
Is a new build mortgage right for me?
A mortgage for a new build house or flat may be suitable if you are purchasing a property directly from a developer.
Many buyers secure new build properties before construction is finished, meaning the mortgage application must account for build timelines and completion dates. Developer incentives or contributions may also affect how lenders assess the application.
Speaking to a new build mortgage broker early can help ensure your deposit, lender choice and mortgage offer all align with the developer’s schedule.
Who should consider a new build mortgage?
New build mortgages are commonly used by buyers purchasing homes within new developments.
This may include first-time buyers purchasing their first home, buyers moving into a newly built house or flat, homeowners porting an existing mortgage to a new property, and buyers purchasing within a developer-led scheme or incentive programme.
Each situation can involve different lender requirements, which is why tailored mortgage advice for new builds can be valuable.
Understanding new build mortgages
New build purchases often involve different timelines and lender criteria. Understanding how these mortgages work can help the process run more smoothly.
How new build mortgages work
The new build mortgage process often begins shortly after a buyer reserves a property with a developer. At this stage, arranging a mortgage in principle can help confirm affordability before submitting a full application.
Because construction may still be underway, mortgage offers sometimes need to remain valid for several months before completion. Build delays can occasionally require extensions to the mortgage offer.
Lenders will also assess factors such as deposit size, property type and loan-to-value ratios. Some lenders offer products such as 95% LTV new build mortgages, although criteria can vary depending on the property and borrower profile.
When a new build mortgage may be suitable
A mortgage for a new build may be suitable in several situations, including:
- Buying a newly constructed house or flat
- Purchasing a property off-plan before completion
- Using developer incentives or contributions
- Porting an existing mortgage to a new property
- Buying within a specific new build mortgage scheme
Understanding lender criteria early can help buyers move forward with confidence.
How Flagstone supports you through the process
Flagstone provides independent new build mortgage advice with access to lenders across the whole market.
Our advisors assess your circumstances and match you with lenders whose criteria align with new build properties. We explain deposits, incentives and borrowing options clearly so you understand how each option works.
Once your application is submitted, our dedicated admin team helps manage paperwork, valuations and lender requirements, supporting your purchase through to completion.
Next steps
If you are getting a mortgage for a new build, the first step is usually a short conversation with one of our advisors.
We will discuss your budget, deposit and expected purchase timeline, as well as any developer requirements that may affect the mortgage application.
From there, we can recommend suitable lenders and guide you through the application process, ensuring your mortgage progresses smoothly alongside your property purchase.
To get started, simply get in touch with the Flagstone team.
Yes. Many lenders offer mortgages specifically for newly built homes, although their criteria may differ from standard residential mortgages.
In some cases, yes. Lenders may apply different loan-to-value limits, valuation rules or mortgage offer timelines for new build properties.
Some lenders offer 95% LTV new build mortgages, meaning a 5% deposit may be possible depending on the property and borrower profile.
Deposit requirements vary between lenders, but buyers typically need between 5% and 15% of the property value.
Developers often allow buyers to reserve a property before submitting a mortgage application, although buyers usually need to proceed quickly with financing.
Mortgage repayments typically begin once the purchase completes and ownership of the property transfers.
In some cases, existing mortgages can be ported to a new build property, depending on the lender’s criteria and the borrower’s circumstances.
Some lenders apply stricter criteria to new build flats, particularly regarding loan-to-value limits.
Developer incentives such as deposit contributions or upgrades can sometimes influence how lenders assess affordability and property value.
If construction delays occur, lenders may extend the mortgage offer or require a new application depending on their policies.
Mortgage rates depend on the lender, borrower profile and market conditions rather than whether the property is newly built.
It is not necessarily harder, but lenders may apply different criteria that require careful planning during the application process.
