Maximum UK Loan to Value Ratios on New Build Mortgages
New builds remain a growing part of the UK property market, with all the appeal of a low-maintenance property that has been constructed to the latest quality standards.
However, one of the many issues the Revolution Brokers team deals with is that mainstream banks and lenders may not offer mortgage products for new-builds, or may only be able to lend against a higher deposit value.
If you have been turned down for a new-build mortgage or would like to find out how to secure the lending you need, read on.
Alternatively, for tailored advice and a fast mortgage application, contact us on 0330 304 3040, or email at [email protected].
What is the Standard Loan to Value Ratio on UK New Build Mortgages?
When buying a UK residential property, you can usually borrow up to 100% of the property value, depending on your circumstances.
For new builds, it can be very challenging to find such a high LTV, if not impossible.
This higher deposit requirement is because lenders consider a new build riskier than an older building - because it is brand new and therefore has no history of repair work.
Lenders can find it challenging to establish the likely costs of future repairs, and therefore need to build in a contingency to avoid lending a higher value and having a homeowner unable to keep up with their mortgage repayments.
- Loan to Value ratios on the high street are usually capped at 90%.
- Flats typically required a 15% deposit, with a lower LTV maximum of 85%.
- If you need a bad credit mortgage, your LTV might be lower, usually up to 80%.
2023-05-09 
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