Valuing a New Build for a Mortgage Application

Valuing new properties for mortgage purposes might be more involved than an established residential structure. Visit our guide to understand how a mortgage lender will approach the valuation process and what you can do to help.

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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.

Valuing a New Build for a Mortgage Application

Valuations in new build mortgages are always a challenge; with lenders often arriving at a lower figure than a developer is selling a property for.

In many cases, this is because the lender needs to consider any devaluation when a new property is no longer considered new - and will usually lend up to a maximum proportion of the sale price.

For many new build buyers, this means needing to come up with a larger deposit, or take out extra borrowing to cover the higher deposit required.

Here we'll run through how new build valuations to work, and how to manage the process smoothly. For tailored advice from an independent broker, contact Revolution on 0330 304 3040 or email us at

Why are the Valuations Different on New Builds Between Lenders and Developers?

In a nutshell, the disparity exists because to a lender, a new build is a higher risk property, and might be harder to sell were they in a repossession scenario.

Newly built properties will be constructed to regulated standards, and be more energy-efficient than older homes. However, they depreciate quickly when sold, and it can be challenging to sell a new build that has already been lived in.

Common issues with new build property values relate to the low-cost land a developer has purchased for the construction, with problems such as:

  • Road noise.
  • Close to sewage plants.
  • Airport proximity.
  • Situated new railway lines.
  • Noise pollution.
  • Close to industrial areas.

Some developments are even built on top of old landfill sites and can result in subsidence and other issues.

How Much Do New Build Properties Depreciate By Once Bought?

If you are selling a new property, which isn't considered brand new any more, you might be competing with other pristine homes that have not yet been sold by the developer.

This competition makes selling on a new build to a second owner very challenging. There are other reasons why new builds drop in value once sold, such as if construction work is ongoing, it can be hard to sell a property that is situated in a building site.

How do New Build Mortgage Valuations Work?

Every mortgage lender will need to have a valuation to decide what a property is worth, that they are lending against.

In a new build, this will depend on:

  • Average property prices in the area.
  • How in-demand new properties are.
  • What materials the home has been built from.
  • The value of the labour involved.

The lender will need to have a market value figure, which is what they think the property could be sold on for.

Why do Mortgage Lenders Down Value New Builds?

The biggest reason that your mortgage lender might value your new build at lower than you have paid is that it is new, and there isn't an established sale price in that particular location.

Existing properties also have histories or work, making it easier to value.


  • The lender offers a 95% LTV mortgage, against a market value property of £200,000.
  • You pay a 5% deposit of £10,000.
  • After a year, your circumstances change, and you fall behind with mortgage payments.
  • Unfortunately, the lender decides to repossess and sell the property to recoup their debt.
  • Over this year, the property has decreased in value since it is no longer new.
  • The property is now worth £170,000, and the lender loses £20,000 as they cannot recoup the full amount of lending.

Why are Property Valuations Important in New Build Mortgages?

The valuation matters, because if the lender undervalues the property, it will impact how much you can borrow.

Typical LTVs go up to 85% of the property valuation, which means you will usually need 15% of the property value as a deposit.

A new build worth £200,000 might attract a mortgage offer up to £170,000, meaning you need a deposit of £30,000.

There are specialist lenders who focus on the new build property sector and can usually offer more competitive lending terms. They will consider other eligibility criteria, such as credit history, age, and financial stability.

Expert Advice with UK New Build Mortgage Valuations

Working with a whole-of-market broker is a great way to make mortgaging a new build property much less stressful.

The Revolution team can:

  • Identify the lenders whose lending criteria you can meet.
  • Recommend the most competitive new build mortgage on the market.
  • Assess the terms on offer, and ensure these are acceptable to you.
  • Negotiate LTV caps and rates with the lender.

For independent, expert support with finding the best new build mortgage for you, contact mortgage advisors on 0330 304 3040, or drop us a message at to arrange a convenient time to talk.

Why Revolution Brokers?
  • Whole of market brokers

  • Mortgage that suits you

  • On time customer support

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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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