★ New build mortgage specialists ★ Builder incentives & deadlines handled ★ Houses, flats & off-plan ★ Whole-of-market advice
New Build
Mortgages
Drummonds Finance Group
Buying a brand new home? As a whole-of-market new build mortgage broker, we find lenders that suit your development, your deposit and the builder's deadlines, including 95% mortgages on new build houses, flats and off-plan purchases, for buyers across the UK.
At Drummonds Finance Group, we handle the parts of a new build purchase that catch buyers out, from builder incentives and the disclosure form to exchange deadlines and mortgage offers that need to outlast the build, so your mortgage is ready when the developer is.
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Can you get a mortgage on a new build?
Yes. Most lenders will lend on a new build home, but they apply extra rules to it. A property usually counts as new build if nobody has lived in it before, or if it is being sold for the first time within around two years of being finished. That covers:
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houses and bungalows bought direct from a housebuilder
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new build flats and apartments
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off-plan homes reserved before they are finished
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shared ownership homes on new developments
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conversions, such as former offices or barns turned into homes
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homes bought through a developer part exchange scheme
The home also needs a 10-year structural warranty from a provider the lender accepts, such as NHBC, Premier Guarantee or LABC. On smaller developments, some lenders will accept a Professional Consultant's Certificate instead.
Why Choose Drummonds for New Build Mortgages
✅Whole-of-Market Access
We compare mortgage options from across the market to find lenders whose new build criteria, loan-to-value limits and offer terms suit your purchase.
✅New Build Expertise
We know how each lender treats builder incentives, new build flats, off-plan purchases and the disclosure form your developer has to complete.
✅Ready for Build Deadlines
Developers often set tight deadlines to exchange. We get your mortgage in principle in place early and keep the application moving, so you are ready when the builder asks.
✅Personal Support From Start to Finish
We review your income and documents before approaching lenders, helping reduce unnecessary applications and guiding you through the mortgage process from initial assessment to completion.
What is a new build mortgage?
A new build mortgage is not a separate type of loan. It is a standard residential or buy-to-let mortgage on a newly built home, but lenders treat that home with more caution because there is no sales history to check its value against, and part of the price can be a premium for being brand new.
That caution shows up as lower maximum loan-to-value on some property types, limits on builder incentives and closer checks on the valuation. Two lenders can look at the same plot and offer you very different terms.
How much deposit do you need for a new build mortgage?
Many lenders will lend up to 95% of the price of a new build house, so a 5% deposit is often enough, and a small number go higher for first-time buyers. New build flats are different. Some lenders cap them at 85% or 90%, so you may need a 10% or 15% deposit, although a handful of lenders will go to 95% on a new build flat. Our LTV calculator shows where your deposit puts you.
How much you can borrow is a separate question. Most lenders lend around four and a half times your income, and some go to five or six times for the right applicant. Our 5x and 6x income mortgages page explains who qualifies, and our mortgage calculator gives you a quick starting figure.
How do builder incentives affect a new build mortgage?
Developers often offer incentives to help a sale along, such as a contribution to your deposit, cashback, legal fees or stamp duty paid, or extras like flooring and a kitchen upgrade. Every incentive has to be declared to your lender on the UK Finance Disclosure of Incentives Form, which the developer's solicitor completes.
Most lenders cap incentives at around 5% of the price. Anything above that is usually taken off the purchase price before they work out your loan-to-value, which can push you into a higher deposit bracket. Some lenders take every cash incentive off the price on new build flats. If an incentive is missed, the mortgage offer can be reduced or withdrawn, so we check how your lender treats the full package before you reserve.
Can you get a mortgage on a new build flat?
Yes, but you will have fewer lenders to choose from. Some limit how many flats they will lend on in one block, cap the loan-to-value lower than for houses, or want a bigger deposit if the block is high-rise.
You will also be buying leasehold, so the lender will check the lease length, the service charge and the ground rent. Most new leases granted since 30 June 2022 can only charge a peppercorn ground rent under the Leasehold Reform (Ground Rent) Act 2022, which lenders like.
How long does a mortgage offer last on a new build?
Most mortgage offers last six months. Some lenders give longer on new builds, or will extend the offer if the build runs late. That matters because many developers want you to exchange within weeks of reserving, even if the home will not be finished for months.
If your offer looks likely to run out before completion, the lender may want fresh payslips, a new credit check or a revaluation before extending it. We plan the timing around the developer's expected completion date and choose a lender whose offer period fits. If you are self-employed, have your latest accounts ready in case a lender asks for updated figures.
Can you get a mortgage on an off-plan property?
Yes, and many buyers reserve a home before the foundations are in. You can get a mortgage in principle and a full offer while the home is still being built, but the valuer will usually value it on the plans, the specification and the show home.
You normally exchange with a long-stop date, the latest date by which the developer must finish, and the lender will want confirmation the home is complete before releasing funds.
What happens if a new build valuation comes in low?
New build prices can include a premium for being brand new, and a lender's valuer will not always agree with the developer's price. If the valuation comes in low, you can put in a bigger deposit, ask the developer to reduce the price, or try another lender with a different valuer.
We flag the risk early on developments where we have seen down-valuations, so you have time to decide before your exchange deadline.
Can family help with a new build deposit?
Yes. Most lenders accept a gifted deposit from family, and it needs declaring to both the lender and the developer's solicitor. Our gifted deposit mortgages page explains what lenders ask for.
If a parent can help with income rather than cash, a joint borrower sole proprietor mortgage lets them go on the mortgage without going on the deeds. If the full price is out of reach, shared ownership lets you buy a share of a new home and pay rent on the rest.
Are there government schemes for new build buyers?
Help to Buy closed in 2023 and Deposit Unlock closed to new completions in April 2026. Shared ownership is still widely available on new developments, and some councils offer First Homes at a discount to local first-time buyers.
In September 2026 the government announced Your First Home, a new build scheme for first-time buyers with a 2.5% deposit and a 20% equity loan. Full details are due at the Autumn Budget, and we will update this page once lenders confirm how it works.
New build mortgages at every stage
Buying your first home
A new build can suit first-time buyers well, with lower running costs, a structural warranty and developers keen to help with incentives. Our first-time buyer mortgages page covers the wider process.
Moving home
Many developers offer part exchange, buying your current home so you do not have to wait for a buyer. Our moving home page covers the process, and if you are on a fixed rate, porting your mortgage may save you an early repayment charge.
Remortgaging
When your first deal ends, compare a product transfer with your current lender against a remortgage elsewhere. Once a home is no longer new, lenders treat it like any other property, which can open up more lenders and better rates.
Buying to let
Fewer landlord lenders take new builds, and those that do often cap the loan-to-value lower, especially on flats. Our buy-to-let mortgage advice page covers how lenders assess rental income.
Can you get a new build mortgage with bad credit?
Often, yes. Missed payments, defaults or CCJs narrow your choice of lenders, and fewer specialist lenders take new build flats, but there are options, especially on houses. Our adverse credit mortgages page explains how lenders view different credit problems.
How do you protect a new build home?
Your structural warranty covers defects in the build, not your mortgage payments. Income protection can pay a monthly benefit if you cannot work through illness or injury, and life insurance can clear your mortgage if the worst happens.
If something goes wrong with the home itself, raise it with the developer first. If they are registered under the New Homes Quality Code, you can take an unresolved complaint to the New Homes Ombudsman Service.
Why use a mortgage broker for a new build?
High street branches and online calculators will not tell you how a developer's incentive changes your deposit, or whether your offer will outlast the build. We know which lenders suit new build flats, which give longer offers, and which are comfortable with part exchange and off-plan purchases. We also deal with the developer's sales team and solicitor so deadlines are not missed.
Closer to home, we help buyers on new developments around Bicester and Oxford, including Kingsmere and Elmsbrook, and we work with clients across the UK by phone and video.
How does the new build mortgage process work?
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We talk through the development, your plot, your deposit and the developer's deadlines.
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We check how lenders will treat the incentives and the property type.
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We get a mortgage in principle so you can reserve with confidence.
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We submit your application and chase the valuation and offer to meet the exchange deadline.
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We keep your offer on track through to completion, extending it if the build runs late.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
Frequently asked questions
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page we have explained what a new build mortgage is, how much deposit you need and how builder incentives affect your borrowing. We have covered new build flats, offer deadlines, off-plan purchases, low valuations, family help, government schemes, every stage from buying to remortgaging, bad credit and protection, and how we arrange your mortgage from start to finish.