Maximum UK Loan to Value Ratios on New Build Mortgages

Discover the maximum LTV rates available on UK new builds to ensure your mortgage application is robust, watertight and supported by an appropriate downpayment value.

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Based on your yearly income, you may be able to borrow:


Most lenders will let you borrow 4.5 times your annual salary so, as long as you have a standard 10% deposit, you should be able to borrow this much.


Depending on your personal circumstances, some lenders may let you borrow 5 times your salary.


Lenders usually cap the amount they lend at 5.5 times your salary, so it’s unlikely you’ll be able to borrow more than this.

This calculator is an estimation of how much you could borrow. If you’re ready to take out a mortgage, speak to a Revolution brokers to see what options are available.

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 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

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%.

Why are LTV Ratios Lower on New Build Properties?

It can be frustrating; a new build home will be built to higher standards than older properties, and therefore many mortgage applicants expect them to be an easier prospect!

However, mortgages can be more restricted for new builds - for a critical reason.

Once a new property has been bought and lived in, it can instantly drop in value, even if expected to appreciate over time. That means that a high-value new build mortgage, or a mortgage application for over 90% of the property value is unlikely since the initial drop in value could mean the homeowners being in negative equity.

Lenders must be responsible for lending and need to ensure that the property is worth more than they have loaned against it. If the homeowner defaults and the property is repossessed, it must be valued at higher than the mortgage to pay back the outstanding debt.

Can I Get a Mortgage on a New Build Property Still in Development?

Another challenge exists when buying a development property, or paying for an off-plan home that hasn't been completed yet. This scenario can be harder to find borrowing against then a completed new build.

Lenders cannot value or assess the value of the home yet, and therefore can't evaluate what it will be worth, and how much they can lend.

In most cases, mortgages on new builds in development are offered at a maximum of 85% of the sale price.

What Deposit Do I Need for a New Build Property Mortgage?

Most lenders will need at least a 10% deposit as a minimum; however, the Revolution teams do work with specialist lenders who can accept as low as a 5% deposit.

These offers are not typically available on the open market and depend on other criteria.

An 85% mortgage on a new build is usually achievable; this means that you can borrow up to 85% of the purchase value, and need a 15% deposit.

On a £200,000 property, for example, you could borrow up to £170,000 and will need a £30,000 deposit.

You can potentially pay a lower deposit, depending on your age and credit history. If you are looking for a new build mortgage with a small deposit value, give Revolution a call on 0330 304 3040.

If you are a first-time buyer, and eligible for the Help to Buy Scheme, you may be able to buy a new build with a 5% deposit.

This scheme offers a government loan of 20% of the property value or up to 40% in London. That helps you apply for a lower LTV ratio on your mortgage, and still be able to purchase a home with a 5% deposit - using the 20% loan to pay a total 25% deposit to your mortgage lender.

What Factors Impact the Maximum LTV on a New Build Mortgage?

Lenders always look at risk factors, and so the less of a risk you present, the higher an LTV you are likely to be offered.

Factors that make your application a higher risk for the lender include:

  • Having a low income.
  • Being self-employed.
  • An adverse credit history.

If your application includes several risk factors, you might find that high street lenders reject your application. It is therefore vital to seek expert support from an independent broker, to avoid having multiple rejected applications, which can cause further damage to your credit file.

Do UK Lenders Offer 100% Mortgages on New Builds?

Although very unusual, it is possible to find a 100% new build mortgage, but it is necessary to use a specialist lender.

In most cases, you would need to provide additional security, such as a guarantor or another property as security.

There are 95% new build mortgages available, but the choice of lenders remains limited.

The majority of high street lenders will go up to 85% as an upper limit on new builds.

Can I Get a New Build Mortgage on a Flat?

Generally, you'll find the same issue - that mainstream lenders will cap a mortgage on a new build flat at 85%.

Flats are considered higher risk than standalone properties, as there is a risk that they will be harder to sell in a repossession scenario.

However, some lenders will consider offering to lend, although you'll typically need a higher deposit value.

Contact mortgage advisors for expert support in mortgaging a new build flat, on 0330 304 3040 or drop us a message at

Do UK Mortgage Lenders Finance Non-Standard New Build Purchases?

Non-standard means any property that is built with material or technique that falls outside of the norm - bricks and mortar.

Unusual properties are often harder to mortgage because the costs of repairs may be much higher, requiring specialist upkeep. It can also be harder to sell a non-standard property.

Lenders have different policies, and so some may lend against specific types of construction, or materials, whereas others will not lend against any property that uses any non-standard techniques.

How Vital are Credit Checks When Mortgaging a New Build Property?

Credit checks are required for any property purchase, and any mortgage, and form a crucial part of the risk assessment process.

If you have experienced bad credit issues, a high street bank may reject you. Specialist bad credit lenders can usually help, but this will depend on when the adverse credit occurred, and what sort of values were involved.

In some cases, if you can mitigate the risk, such as by putting down a larger deposit, a lender will accept a bad credit application.

Which UK Lenders Offer the Highest New-Build Mortgage LTVs?

The best way to find a competitive LTV on a new build is to contact the Revolution team on 0330 304 3040 - we will analyse your application circumstances, such as your age, employment and income, and recommend the right lenders who can offer a higher LTV.

As independent, whole-of-market brokers, the Revolution team can provide tailored advice to help you discover the best options and deals for your new build purchase.

Give us a call, or drop a message to and we’ll run through the best options for your borrowing requirements.

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FCA disclaimer

The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature. We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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