How long does a new-build mortgage offer last?

Offer validity differs by lender and product. Some have dedicated new-build periods or extension processes. The expected completion date should be checked before application.

Do I need a larger deposit for a new-build flat?

Sometimes. A number of lenders apply lower maximum loan-to-value limits to new-build flats than houses, although the market varies.

Will a lender accept developer incentives?

Many accept incentives within defined limits, but all incentives must be disclosed and can affect the valuation or maximum loan.

What happens if the property is down valued?

The lender bases its decision on the valuation it accepts. You may need to renegotiate, increase the deposit, change lender if appropriate or reconsider the purchase.

What warranty does a new build need?

Lenders generally require an acceptable new-build warranty or, in permitted cases, a suitable professional consultant’s certificate. Acceptance varies by lender.

Can I change mortgage product before completion?

Some lenders allow a product change if rates improve, subject to availability and timing. A material change or expired offer can require reassessment.

Residential & specialist

A mortgage arranged around the deadlines and details of a new-build purchase

Buying a newly built home can involve reservation deadlines, developer incentives and a completion date that is not yet fixed. Lenders also apply specific rules to new-build valuations, warranties, leasehold terms and maximum loan-to-value. Early assessment reduces the risk of discovering a problem after the reservation fee is paid.

We will assess your complete circumstances, explain the available routes and recommend a mortgage that supports your wider plans. Your initial conversation is without obligation.

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Use a high-quality UK new-build development or buyer viewing a completed modern home

Why lenders treat new-build homes differently

A lender may define a property as new build for a period after construction, conversion or first occupation, or whenever it is sold by the developer. New-build flats and houses can have different deposit requirements. The valuation is based on the property’s mortgageable value and may not match the headline price once incentives are considered.

Who this may help

We help first-time buyers, home movers and investors purchasing houses, flats, conversions and off-plan property. We can also assist with high-value new homes, non-standard construction, long build periods and applications where the mortgage offer may need extending or revisiting before completion.

What needs to be considered

The reservation deadline and expected build-completion window
Mortgage-offer validity and the lender’s extension policy
Deposit requirements for houses compared with flats
Cashback, gifted deposits, upgrades and other developer incentives
The valuation and the risk of a down valuation
An acceptable new-build warranty or professional certificate
Lease length, ground rent, service charges and estate charges
Fire-safety, cladding and building-regulation evidence for flats
Construction method and lender acceptance
Snagging, long-stop dates and protection if completion is delayed

How ERG Finance approaches it

We check the development, property type, deposit, incentives and likely completion date before selecting a lender. We also remain alert to product changes and offer expiry during the build. Your conveyancer must separately confirm title, warranty, lease and contract matters.

Developer incentives and valuation

Incentives must be disclosed. They can include cashback, deposit contributions, payment of fees, upgrades or other benefits. Lenders differ in what they accept and may base the mortgage on the lower of purchase price or valuation after considering incentives. A generous package does not automatically increase the amount that can be borrowed.

Our role

understand the purpose of the mortgage and the outcome you need
check affordability, lender criteria and property requirements before recommending a route
compare the rate, fees, flexibility, early repayment charges and overall cost
prepare the application and evidence so the lender sees a complete and accurate case
manage the mortgage process through valuation, offer and completion

Frequently Asked Questions

Offer validity differs by lender and product. Some have dedicated new-build periods or extension processes. The expected completion date should be checked before application.
Sometimes. A number of lenders apply lower maximum loan-to-value limits to new-build flats than houses, although the market varies.
Many accept incentives within defined limits, but all incentives must be disclosed and can affect the valuation or maximum loan.
The lender bases its decision on the valuation it accepts. You may need to renegotiate, increase the deposit, change lender if appropriate or reconsider the purchase.
Lenders generally require an acceptable new-build warranty or, in permitted cases, a suitable professional consultant’s certificate. Acceptance varies by lender.
Some lenders allow a product change if rates improve, subject to availability and timing. A material change or expired offer can require reassessment.

You might also need

Residential Mortgages→Adverse-Credit Mortgages→Foreign-National Mortgages in the UK→Interest-Only Mortgages→Let-to-Buy Mortgages→Offset Mortgages Explained→

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. The availability and terms of any mortgage depend on individual circumstances, lender criteria, affordability, credit assessment and valuation.