The Revolution Guide to New Build Mortgages

A thorough analysis of the pros and cons of new-build mortgages, average lender requirements, and tips to ensure your new-build mortgage application sails across the finish line without a hitch.

About your mortgage

Error: Yearly income income must be between £1 and £10,000,000.

Error: Regular bonus must be between £1 and £10,000,000.

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.

The Revolution Guide to New Build Mortgages

The mortgage advisors team often deal with clients looking to mortgage a new build property, who have been surprised at a rejection from their usual bank.

Given the popularity of new build homes, we have created this guide to run you through the most frequently asked questions about mortgaging a new build residence.

While mortgages for new builds might be a specialist area, they are by no means impossible to find, and the best course of action is to work with an experienced, independent broker, who will find the right lenders, and submit the application on your behalf.

For further assistance with applying for a new build mortgage, give the team a ring on 0330 304 3040, or drop us a message to

Which Properties are Eligible for a New Build Mortgage?

Lenders define new builds in different ways, but generally, this refers to a mortgage for any property that has been built within the last year and has not been lived in before.

New build mortgages are also available for development properties that are still in construction.

There is no correlation between a self-build mortgage and a new-build mortgage; while a self-constructed property might be newly built, it is a different sort of mortgage product with very different terms.

Why are New Build Mortgages Hard to Come By?

The reason many applicants find a new build mortgage a complicated process is that lenders have strict lending policies that determine their risk exposure, and who they can and cannot lend to.

For new builds, the primary consideration is that as soon as a new property is sold, it will drop in value since it is no longer pristine and brand new. This drop in value might be made up several fold in time, but a lender will always be cautious since, at least for a short-term period, the property will be worth less than it was sold for.

New developments also come with buying incentives, such as the Help to Buy scheme or developer discounts. This can add a further layer of complexity for lenders looking to calculate the fair market value of a property.

Therefore, lenders are more likely to charge higher arrangement fees, higher interest rates, and demand more extensive deposits to offset the additional work and risk involved.

When is the Best Time to Apply for a New Build Mortgage?

Many new builds are bought before the construction work has been completed, which can also be challenging as it is not unusual for the planned completion date to run behind schedule.

This situation can also be problematic, as a mortgage offer has an expiry date. If you apply too early, you might have paid for arrangement fees, but find that the purchase cannot complete in time and you cannot recoup those costs.

It's, therefore, vital to consult an independent broker to help you establish the right time to apply.

  • New build mortgage offers usually have a six-month expiry date.
  • More extended validity periods can run up to nine months.
  • Specialist new build mortgages offer this longer time, to allow the construction to complete.

Which Types of New Build Properties are Easier to Mortgage?

Generally, a house is more straightforward to mortgage than a flat - or, you will be able to pay a lower deposit on a standalone property than an apartment.

The typical LTVs for new build homes is capped at 85%, so you will need a 15% deposit.

Flats tend to be capped at an 80% LTV ratio, thus requiring a deposit of 20% or higher.

There are schemes such as Help to Buy which you can use to supplement your deposit if you're looking for a new build mortgage and don't have a large enough down payment available.

How Does Affordability Work on a New Build Mortgage?

The maximum you can borrow depends on the policies of your chosen lender. The typical borrowing terms are:

  • Up to 4.5 times your annual salary - i.e. if you earn £50,000 a year, you can apply for a mortgage up to £200,000 maximum.
  • Other lenders will offer up to five times your income, and others even as high as six times, making the maximum you can borrow £300,000.

In most cases, lenders are stricter about the terms on a new build mortgage, but an expert broker can identify the mortgage providers offering the most generous terms.

There are lots of scenarios, which impact your affordability assessment, such as being self-employed. In this circumstance, it is vital to consult an independent broker, as your application must be tailored to the right lenders who are experienced in lending to self-employed applicants.

What are the Eligibility Criteria on a New Build Mortgage Application?

Eligibility criteria vary between lenders and will consider factors such as:

  • Whether you are a first-time buyer.
  • How much deposit you have available.
  • What you earn and how regular your income is.
  • Your employment basis and experience in your current role.
  • Your credit history and rating.
  • How old you are.

Each lender will assess an application against its own policies. Still, if you have a clean credit history, secure employment and a stable job, your application is more likely to be approved.

If you are trying to buy a non-standard property, such as an eco-home, you might find the process even more complicated, as high street banks rarely lend against non-standard homes.

Likewise, high-rise apartment blocks can be considered non-standard, so it's always important to consult an expert broker who can advise on the best lenders to apply to. There are also specialist lenders who prioritise non-standard properties and can offer competitive lending terms.

Don't be put off if one lender rejects you; it's essential to consult the right mortgage providers who are comfortable lending to applicants in your circumstances.

Are There New Build Mortgages for People with Adverse Credit History?

Having a bad credit score isn't unusual, but it can make a mortgage application more challenging. Each lender will have its own policies about what bad credit issues it can accept, so again it's essential to choose the right lenders.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support


How does our broker-matching service work?

Many retirees prefer the easy maintenance of a new build than needing to keep up with looking after an older property. It is certainly possible to look at specific retirement mortgage products - give us a call on 0330 304 3040 for more information.

In many cases, lenders won't offer a buy to let mortgage against a new build, because there is greater scope for property fraud, and it might be challenging for a new build to make a viable rental profit. Lenders also have the challenge of estimating rental income for a new property and establishing a fair market resale value, most often in a new development with no established benchmark prices. If you can offer a higher deposit, and accept higher interest rates, you might be able to get a BTL mortgage on a new build - but there may be more competitive options out there.

Yes, there are new build lenders who cover Scotland and use similar eligibility criteria, as you'd find in the UK.

On the same basis, you can find Northern Ireland lenders and need to ensure you're applying to the right provider, and meet their criteria before applying.

Suppose you already own a new build property and want to remortgage at the end of a fixed interest period. In that case, you can usually do so without any difficulty if your circumstances haven't changed since the initial mortgage application. After a year or so, the property is no longer classified as a new build, and therefore you'll have more lenders to apply to, and a better choice of mortgage products.

You can purchase a new build as a second home, but will find it easier to secure a mortgage if you're buying the property as a residence or holiday home, rather than a buy to let - in which case it will fall into the investment property category. Buying a second home usually requires a larger deposit, and will carry higher interest fees given your existing debt held in your original property.

If your lender approves the request, it is possible to port a mortgage over to a new build to retain the terms and rates you are currently on. Porting a specialist topic, and so we'd strongly recommend getting in touch to work out if this is the best option.

New build mortgage calculators are interesting to get a rough idea about what you could borrow, or what your monthly repayments would be but are only ever a guess or indicative illustration. Visit the calculators' page on the Revolution Finance Brokers site - or better yet, get in touch and we'll give you a realistic indication as to what mortgage terms you might expect.

New build mortgages can be tricky; but if you have independent advice from an expert whole-of-market broker, the process becomes much smoother and more manageable. Give the Revolution team a call on 0330 304 3040, or send a message to to arrange a good time to talk.

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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.

Ask the Mortgage Experts

Revolution Brokers understands that mortgages can be complex and confusing!

Ask us any question you might have, and one of our skilled consultants will come back to you as quickly as possible.