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A 5 percent deposit can be enough to buy a new build flat, but not every lender will say yes. Flats are treated differently to houses, with stricter rules around loan-to-value, build quality, resale demand, and overall market risk. That means the lender you choose matters far more on a new build apartment than on a standard home.
At Strive we specialise in new build lending and understand exactly what lenders want to see: the right warranty, the right developer, the right affordability profile, and a deposit that meets their criteria. If you are close to the 5 percent mark, we can also explore developer incentives that may help you qualify. Let’s break down how it works and what gives your application the strongest chance of approval.
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We Understand New Build Mortgages
Our expertise covers the specific requirements that shape new build lending, including:
- How deposit rules differ between houses and flats
- Developer warranties and lender acceptance (NHBC, Premier Guarantee, LABC, etc.)
- Mortgage offer expiry times and how to keep applications active
- Builder incentives and how lenders treat them
- Affordability structuring when new build pricing is at a premium
Every detail has an impact on eligibility and borrowing power. We guide you through it with clarity and certainty.
Can You Get a 5% Deposit Mortgage on a New Build Flat?
Yes. It is possible to buy a new build flat with a 5 percent deposit, although only a small proportion of lenders will agree to 95 percent loan-to-value on apartments. Most take a more cautious view of flats due to their resale profile and exposure to wider market fluctuations.
That is why lender choice becomes critical. Working with a broker who understands which lenders are currently active at 95 percent for flats is the difference between a viable purchase and a declined application.
Builder Incentives to Help Boost Your Deposit
Some developers offer new build incentives that can contribute towards your deposit. These are often capped at around 5 percent of the purchase price and can be used to strengthen your position with the lender. Typically, you must still provide a minimum of 5 percent from your own funds, but the builder contribution can help increase the overall deposit and improve loan-to-value, provided it is structured in a way lenders will accept.
Example: Using a Builder Incentive to Increase Your Deposit
| Purchase Price | Your Deposit | Builder Incentive | Total Deposit | Resulting LTV |
|---|---|---|---|---|
| £200,000 | 5% (£10,000) | 5% (£10,000) | 10% (£20,000) | 90% |
| £250,000 | 5% (£12,500) | 5% (£12,500) | 10% (£25,000) | 90% |
| £300,000 | 5% (£15,000) | 5% (£15,000) | 10% (£30,000) | 90% |
Other options if you want to reduce the deposit further
Several schemes exist that may support a purchase with a smaller upfront cash contribution:
• First Homes Scheme
• Shared Ownership with part-rent, part-buy structure
These alternatives allow you to enter the market sooner, particularly in areas where new build pricing creates a high entry point.
Do more lenders become available at 10 percent?
Yes. Increasing the deposit to 10 percent often unlocks a significantly wider lender pool and more competitive pricing. That does not mean you cannot proceed with 5 percent, but it means we explore both paths with you transparently, so you can make the most informed choice.
Speak to new build mortgages expert today for the best deal.
Strive; Specialist New Build Mortgage Brokers
Buying a new build is exciting, but it comes with criteria that need to be handled correctly. At Strive we specialise in new build mortgages, understand developer requirements, and know exactly which lenders support these purchases. We work quickly, keep communication clear, and ensure your application is structured to complete smoothly. With proven expertise and a client-first approach, we make sure your new build move is as straightforward as it should be.
FAQ’s
Halifax, Accord, Skipton, and some others offer 95% loan-to-value (LTV) deals on new build houses for eligible buyers. These lenders assess your credit history, income, and the purchase price of the property to determine eligibility. Working with a mortgage broker can help you identify the best build mortgage options with a competitive mortgage rate.
Typically, no. New build flats usually require 15% to 25% deposits due to higher perceived risk and market value concerns. Lenders often view new build flats as less stable investments compared to new build houses, which is why a larger deposit or participation in government schemes like the Mortgage Guarantee Scheme may sometimes be required. A specialist lender can help guide you through your new build mortgage options.
Yes, if the flats are being occupied for the first time after conversion, they are considered new builds under most mortgage lender criteria. These properties typically come with a build warranty provided by organisations like the National House Building Council. Lenders will treat the financing process similarly to buying a new build home, including assessing the mortgage application, property value, and deposit requirements.
A green home mortgage is a mortgage deal with preferential terms, such as lower interest rates or better loan-to-value allowances, for buyers purchasing energy-efficient new build homes. These products help attract buyers to new build properties that meet high environmental standards, supporting long-term savings on monthly payments and running costs. Your mortgage adviser can help you explore these options and see if your chosen new build house qualifies.
Yes, many lenders offer extended mortgage offers lasting 6-12 months or longer to cover construction delays, especially when purchasing off-plan property. This flexibility helps buyers avoid having to reapply for a mortgage or pay additional legal fees if the completion date is pushed back. Using a specialist mortgage broker ensures you understand the full new build mortgage process, including how to safeguard your mortgage offer and protect against delays.
