Table of Content
New Build Mortgages — Lender Deposits, Houses vs Flats
New build mortgage criteria differ significantly from existing properties — and from one lender to the next. Some accept 5% deposits on houses; others want 15% on flats. Developer incentives can count towards your deposit if structured properly. This guide shows lender-by-lender deposit minimums for new build houses, flats and conversions, plus how gifted equity and schemes change the picture.
Free initial review — we’ll confirm the lenders most likely to accept your purchase before you reserve the plot.
Getting a Mortgage on a New Build Property in 2026
New build mortgages use the same products and affordability rules as any other residential mortgage — but lenders layer specific new build policies on top. Different minimum deposits for houses versus flats, capped developer incentive allowances, longer offer validity, and approved warranty rules. Get the placement right and a 5% deposit on a new build house is straightforward. Get it wrong and a 15% deposit on a flat won’t be enough.
This guide covers lender deposit policy for houses and flats, how developer incentives count towards your deposit, conversions, and schemes that change the rules. Over a decade arranging new build mortgages, we’ve built close working relationships with developers and site teams across the UK — meaning quicker reservation paperwork, smoother lender placement, and a direct line when something needs sorting.
If you know whether you’re buying a new build house or a flat, jump to the lender deposit table to see which mainstream lenders accept the lowest deposit for your purchase type. If you’re being offered a developer incentive (gifted equity, stamp duty paid, etc.), read the gifted equity section to understand how that interacts with the lender’s minimum deposit. For conversions, schemes or non-standard circumstances, the property profile section sets out the lender approach. The fastest answer for your specific case is a short call: 0330 043 1121.
New Build Mortgage Criteria — The Six Factors That Matter
Lenders weigh these six things on every new build application. The deposit shifts up or down depending on where you sit on each.
House or flat
The single biggest split. Houses commonly available at 5% deposit; flats often need 10–15% with the same lender.
Developer incentives
Most lenders cap accepted incentives at 5% of purchase price. Above that, valuation is reduced by the excess.
Warranty provider
NHBC, LABC, Premier Guarantee or equivalent required by most lenders. No warranty narrows lender choice sharply.
Conversion vs new build
Office-to-flat and similar conversions often need 20% deposit. Some lenders treat them as new builds, others don’t.
Personal circumstances
Credit profile, residency status, employment type and second-home status all shift the actual deposit a lender will accept.
Scheme & tenure
Shared Ownership, Shared Equity and Right to Buy all have separate deposit and lender rules — generally lower personal deposit needed.
Minimum Deposits for New Build Houses and Flats — By Lender
Deposit minimums on new builds vary widely between mainstream lenders. The right placement depends on whether you’re buying a house or a flat, your deposit size, and any developer incentive on the table. The figures below are the lenders’ published minimums for standard new build cases.
| Lender | New Build House | New Build Flat |
|---|---|---|
| Skipton BS | From 0% | From 0% |
| Santander | 5% | 5% |
| NatWest | 5% | 10% |
| Accord | 5% | 10% |
| Halifax | 5% | 15% |
| Nationwide BS | 5% | 15% |
| Barclays | 5% | 15% |
| TSB | 5% | 15% |
| HSBC | 10% | 15% |
Lender criteria change. Confirm with a broker before applying — figures reflect intermediary policy at the time of writing. Different rules apply for shared ownership, shared equity, and conversions, and personal circumstances may require higher deposits.
The deposit figures above are lender new build policy — but they assume a clean case. Several other factors push the actual required deposit higher:
- Credit profile — lower credit scores or recent missed payments can move the deposit up to 10% or 15% even on a 5% policy product
- Residency status — non-UK nationals, recent arrivals to the UK, and visa holders often need 15–25% across the market
- Employment type — self-employed with limited trading history, contractors, and complex income structures may need 10–15%
- Second home or buy to let — neither is treated as a standard residential new build; deposit minimums are typically 25%+
- Affordability and income multiples — even where a 5% deposit fits the lender’s policy, the loan size you can support determines whether it’s actually achievable
- Site exposure limits — lenders cap how many units they’ll fund on a single development; popular schemes can hit limits late in the build
The right placement combines new build deposit policy with the borrower’s full profile — which is the part that’s hard to read from a comparison site.
How Gifted Equity and Developer Discounts Work — Reaching the Deposit With Less Cash
Most major developers offer incentives — gifted deposits, stamp duty paid, legal fees covered, white goods, flooring, EV chargers. Used correctly, these can take you from a deposit you can afford to a deposit that meets a lender’s minimum.
The 5% rule. Most mainstream lenders cap accepted developer incentives at 5% of the purchase price. Within that 5% cap, the incentive is treated as part of the deposit when calculating loan-to-value. Above 5%, lenders typically reduce the property valuation by the excess — which means you’d need to make up the difference with personal cash to keep the LTV the same.
The structuring trick. If a lender’s new build flat policy requires 10%, but you only have 5% cash, a developer offering a 5% gifted deposit puts you at 10% combined — which meets the lender’s minimum. This is where careful placement matters: you’re using the developer incentive to bridge the gap to a lender’s threshold, not to reduce the cash needed below what the lender accepts.
For a fuller breakdown of how each lender treats specific incentive types — gifted deposits, stamp duty paid, legals, white goods, EV chargers, part-exchange — see our deep-dive on how developer incentives can affect your mortgage application.
Example — Using a 5% developer incentive to hit a 10% deposit requirement
A buyer with £15,000 personal deposit purchasing a £300,000 new build flat. The lender’s policy requires 10% deposit on flats.
Without the incentive, the buyer would have needed £30,000 personal cash to meet the lender’s 10% threshold. With the structure above, £15,000 personal deposit is enough — provided the developer formally documents the incentive and the lender accepts the structuring.
Lender policy on accepted incentives varies, but the most commonly accepted (within the 5% cap) include:
- Cash discount or gifted deposit
- Stamp duty land tax contribution
- Paid legal fees
- Mortgage subsidy or interest contribution
- White goods (cooker, fridge, washing machine)
- Flooring, blinds and finishing packages
- Removal cost contribution
- Part exchange (where the developer takes your existing property)
- Energy efficiency upgrades — solar panels, EV chargers, enhanced insulation
Furniture packages and rental-back arrangements are treated differently and not always counted. Each incentive must be disclosed on the UK Finance Disclosure of Incentives form (DIF) — what’s not disclosed there can derail the case at valuation.
Where the total incentive package exceeds 5% of the purchase price, most lenders apply a reduced valuation — typically reducing it by the amount the incentive exceeds the 5% cap. So a £400,000 flat with a £40,000 (10%) incentive package would be valued at around £380,000 for lending purposes, meaning the loan size is calculated against the lower figure. This affects your LTV and potentially the rate band.
Some specialist lenders are more flexible on incentives above 5% — particularly on premium developments where higher-value incentives are common. Placement decisions need to factor in the full incentive structure, not just the headline percentage.
Reserving a new build soon? Let’s lock the lender first.
Developers usually want exchange within 28 days. Knowing which lender will accept the property — and the incentive — before you reserve avoids a scramble. Free initial review.
New Build Mortgage Rules by Property & Purchase Type
Lender policy shifts depending on what you’re buying and how. Click each profile below for the criteria that applies.
New build houses attract the broadest mainstream lender appetite. 5% deposit is achievable with most major lenders, and Skipton’s Track Record can support 0% deposit in qualifying circumstances.
Lenders with 5% deposit policy on new build houses: Halifax, Santander, NatWest, Accord, TSB, Nationwide, Barclays. HSBC requires 10% on houses. Skipton 0% via Track Record subject to renter qualification criteria.
For a lender-specific deep-dive — including incentive caps, offer validity, site exposure rules and where each one tightens — see our complete guides to Halifax new build mortgages and NatWest new build mortgages.
New build flats are treated more cautiously than houses because of perceived resale and value-fluctuation risk. Deposit minimums range from 5% to 15% across mainstream lenders.
5% on flats: Santander, Skipton (Track Record). 10% on flats: NatWest, Accord. 15% on flats: Halifax, Nationwide, Barclays, TSB, HSBC.
This is where developer incentive structuring delivers most value — using a 5% gifted deposit to bridge a 5% personal cash position to a 10% or 15% lender threshold can open up significantly cheaper rates.
Conversions of commercial buildings into residential units (offices, pubs, schools, industrial) are treated differently to standard new build flats. Some lenders treat them as new builds with new build deposit rules; others classify them as their own property class with higher deposits — typically 20%.
Halifax treats office-to-flat conversions as new builds — 20% deposit typically required. Other lenders may decline conversions entirely or require a specialist underwriting decision.
Key checks on conversions: warranty provider acceptable to the lender, the conversion meeting current building regulations, the lease structure (especially on former office freeholds), and the wider development quality.
Shared Ownership lets you buy a share of a property (typically 25–75%) and pay rent on the rest. Because you’re only mortgaging your share, the absolute deposit needed is much lower — even on a 5% deposit policy product.
Most mainstream lenders offer Shared Ownership new build mortgages, with Halifax, Nationwide and Barclays among the most established. 5% deposits are widely available. The scheme must be approved by the lender (usually run by a registered housing association), and stair-casing rules apply when buying additional shares later.
For more, see our guide to Shared Ownership mortgages.
Some developers offer their own shared equity schemes — taking a percentage stake in the property in return for a reduced upfront price. The mortgage is taken on the buyer’s share at the higher LTV. Lender acceptance varies; the scheme structure must meet the specific lender’s policy.
The First Homes scheme (where developers offer eligible buyers a discount of at least 30%) is also accepted by several mainstream lenders, with Halifax, Nationwide and Barclays among those participating.
Off-plan purchases — reserving before construction is complete — are common on larger developments. The mortgage timing matters: a standard offer is valid for six months, and construction can easily take longer. Several lenders offer extended new build offers — commonly 9 months, sometimes longer — specifically for this scenario.
If construction overruns and the offer expires, the application has to be re-underwritten. The interest rate available at re-underwriting may differ from the original, which is the main risk on long off-plan timelines. Picking a lender with extended offer terms at the outset is the cleanest mitigation.
The big national developers each have established mortgage relationships and incentive packages. Most participate in Own New Rate Reducer and Deposit Unlock, with their own variations on top.
- Barratt / David Wilson Homes — Movemaker (assisted move) and Parkexchange (part exchange). Active in Own New and Deposit Unlock.
- Persimmon / Charles Church — Active in Own New Rate Reducer; regional incentives on stamp duty and legal fees.
- Taylor Wimpey — Easymover (part exchange) and a range of cashback / paid stamp duty incentives. Participates in Own New.
- Bellway — Express Mover and part exchange schemes. Active in Own New and Deposit Unlock.
- Vistry (Bovis / Linden / Countryside) — Active in Own New and Deposit Unlock with full incentive ranges.
- Bloor Homes — Cashback and part exchange. Deposit Unlock participating.
- Berkeley Group (Berkeley / St James / St George) — Premium London developer; tends to focus on stamp duty contributions and bespoke deals on higher-value units.
- Redrow — Help to Move and a range of incentive packages.
Smaller and regional developers typically offer similar incentives but with narrower lender panels. The right placement matters more on smaller schemes where lender site exposure limits can apply.
Schemes That Reduce the Deposit or Monthly Cost on New Builds
Several schemes can replace or supplement the deposit and incentive structures above. Each is a separate piece of architecture — different lender panels, different builder participation. Worth checking which apply before reservation.
Own New Rate Reducer is a 2024–2026 scheme that lets the developer’s incentive (typically 3–5% of the property value) be paid directly to the lender to subsidise the mortgage rate for the first 2 or 5 years. Instead of receiving cashback or a discount on the price, you get a lower interest rate — which usually translates into bigger monthly savings than a one-off lump sum.
How it works: the developer pays 3–5% to Own New, who pass it to the lender, who use it to reduce your initial fixed rate. You own 100% of the home from day one, with a normal mortgage and no shared equity stake.
Participating builders include Barratt, Persimmon, Bellway, Taylor Wimpey, Vistry and several mid-sized developers. Participating lenders include Halifax, Virgin Money, TSB, Furness BS and others — the panel is expanding regularly.
The scheme works best where you’d otherwise take a developer cashback incentive — Rate Reducer typically delivers more saving over the fixed period than the equivalent cash. For 5% deposit cases, an Own New Deposit Drop variant is also available with selected lenders.
Deposit Unlock lets first-time buyers and home movers buy a new build with a 5% deposit on properties up to £750,000. The scheme is backed by the Home Builders Federation — participating builders contribute to a mortgage indemnity insurance pool that protects lenders, allowing them to lend at 95% LTV on properties they might otherwise cap at 85% or 90%.
Participating builders include Barratt, Bellway, Persimmon, Taylor Wimpey, Vistry, Bloor and many regional developers. Participating lenders include Nationwide, Newcastle BS, Accord, Bank of Ireland and several others, with the panel growing.
Deposit Unlock can be combined with developer incentives in some structures, though specifics vary by lender. Useful when the standard new build flat policy at your preferred lender wants 10–15% but you only have 5% personal deposit.
The First Homes scheme allows eligible first-time buyers in England to purchase a new build at a discount of at least 30% (sometimes up to 50%) from the open market value. The discount is preserved on resale, meaning future buyers also get the same discount when you sell.
Eligibility: first-time buyer, household income under £80,000 (£90,000 in London), and you must be using a mortgage for at least 50% of the discounted price. Local authorities can apply additional priority criteria — typically for key workers or local residents.
Participating mortgage lenders include Halifax, Nationwide, Barclays and several others. Property availability is limited — qualifying homes are typically released in batches by participating developers, so timing matters.
Buying a New Build with a Mortgage — Step by Step
New build timelines run faster than standard purchases on the front end (28-day exchange typical) and slower on the back end (construction can slip months). Here’s the order of play.
Developer reservation deadlines move fast. Having an AIP in hand, with a lender that accepts the specific property and any incentive structure, prevents a scramble after reservation. We’ll model the incentive structuring at this stage.
Reservation fees are typically £500–£1,000+, often deductible from the final purchase price. You’re now committed to the developer’s exchange timeline — usually 28 days, occasionally longer.
New build conveyancing has its own quirks — title transfers, estate management agreements, snagging procedures, retention sums. Generic solicitors slow the process down. Most major developers maintain panels of approved solicitors.
Once the reservation is confirmed, the full application goes in. The lender orders a valuation, reviews the UK Finance Disclosure of Incentives form, and runs full credit and affordability checks.
Exchange commits both parties. From this point, completion happens on the agreed date — or at developer’s notice once the build is finished and signed off. Your deposit is paid at exchange.
For off-plan purchases, monitor the construction timeline. If completion is going to slip past your offer validity, we work with the lender on offer extension or re-underwriting before it lapses.
Specialist New Build Mortgage Brokers — Whole-of-Market Access
Buying a new build is genuinely different from buying any other property — the developer is moving fast, your reservation fee is on the line, and the wrong lender choice can leave you scrambling weeks before exchange. We do this every day, on developments across the UK, and we know the policies inside out. Houses, flats, conversions, Shared Ownership, off-plan — whatever you’re buying, we’ve placed it before.
The honest reality is that most of the new build cases we rescue come from people who picked a lender online before checking whether that lender even accepts the property or the incentive package. We sense-check all of that on day one, so you reserve with confidence and complete on time.
Tell us about the development, the property and what the developer is offering — we’ll come back the same day with the lender most likely to give you the best outcome, no pressure either way.
Every mainstream new build lender plus a specialist panel — including the lenders most flexible on flats, conversions and shared ownership.
We model how to use developer incentives to bridge to a lender’s deposit threshold — turning a 5% personal deposit into a 10% effective LTV with the right structure.
Office-to-flat, pub conversions, freehold flats, factory conversions — we know which lenders treat each type as new builds and which as their own class.
For purchases reserved months before completion, we place with lenders offering extended offers and proactively manage offer extensions where construction overruns.
315 Google reviews — built on getting new build cases over the line on tight developer timelines.
New Build Mortgages — Frequently Asked Questions
Direct answers to the questions we hear most often from clients buying new build houses, flats and conversions.
A new build mortgage is a residential mortgage on a newly constructed home — typically a property within its first two years and awaiting first occupation. Lenders apply different criteria to new builds compared to existing properties, including different minimum deposits for houses and flats, capped developer incentive allowances, and rules around acceptable warranties (NHBC, LABC, Premier Guarantee or equivalent). Some lenders also classify office-to-residential conversions as new builds, which changes the deposit and lending policy.
Deposit requirements vary significantly by lender and by property type. New build houses can be available from 5% deposit with several mainstream lenders. New build flats typically require 5–15% with lenders like Santander offering 5% on flats while others such as Halifax, Nationwide, Barclays and TSB require 15%. Conversions (e.g. office-to-flat) usually need a higher deposit again — typically 20%. Credit profile, residency status, second home status, employment type and any developer incentives all affect the actual deposit a specific borrower will need.
Yes — a 5% deposit is achievable on a new build house with several mainstream lenders including Halifax, Santander, NatWest, Accord, TSB, Nationwide and Barclays, subject to credit profile, affordability and the property meeting lender criteria. On new build flats the lender choice for 5% deposits is much narrower — Santander is the most accommodating mainstream lender at 5% on flats. Skipton’s Track Record range can support 0% deposits in qualifying circumstances. Schemes such as Shared Ownership can also reduce the personal deposit needed.
Yes — many lenders accept developer incentives as part of the deposit, provided the total incentive does not exceed 5% of the property’s purchase price. For example, a 5% personal deposit plus a 5% developer gifted-equity contribution can be treated as a 10% total deposit, which is enough to meet a 10% lender minimum. Acceptable incentives often include cash discounts, stamp duty contributions, paid legal fees, mortgage subsidies, white goods, flooring, removal costs, part exchange and energy upgrades like solar panels or EV charging points. Where incentives exceed 5% of the purchase price, lenders typically reduce the valuation by the excess, which affects the loan-to-value calculation.
New build properties typically carry a price premium of 10–20% over equivalent existing homes. The premium reflects the new home itself — modern build standards, higher energy efficiency, no immediate refurbishment cost, a 10-year structural warranty and developer-installed fittings. Lenders factor this in by basing their valuation on comparable evidence, which is why developer incentive caps exist: the lender’s loan size is determined by the property’s actual market value, not the headline list price after incentives.
Down-valuations happen when the lender’s valuer assesses the property below the purchase price — usually because comparable evidence on similar new builds doesn’t support the developer’s headline price, or because incentives over the 5% cap have effectively reduced the market value. The lender’s loan is calculated against the lower valuation, meaning you either need to find the shortfall in cash, renegotiate the price with the developer, or place with a different lender whose valuer reaches a different view. Down-valuations on new builds are more common than on existing homes, particularly on flats and on premium-priced units in larger schemes.
A standard mortgage offer is typically valid for six months. Several lenders offer extended new build mortgage offers — commonly nine months or more — recognising that construction completion dates can slip. If completion is delayed beyond the offer validity period, the application has to be re-underwritten, and the rate available at the time of re-underwriting may differ from the original. Picking a lender with extended new build offer terms is often a deliberate part of the placement strategy on off-plan or early-stage purchases.
A new build warranty is a 10-year insurance policy covering structural defects and major issues with the property. Lenders typically require an approved warranty provider — most commonly the NHBC (National House-Building Council), LABC, Premier Guarantee, BLP, or an architect’s professional certificate on smaller developments. Without an acceptable warranty, mortgage choice narrows significantly. Confirming the warranty provider with the developer at reservation stage avoids surprises later in the process.
It depends on the lender. Some lenders, including Halifax, treat office-to-residential conversions as new builds — applying new build deposit rules and warranty requirements. Other lenders treat conversions as a separate property class with their own (usually higher) deposit minimums, often around 20%. Because criteria vary widely, conversions need careful lender placement. Older industrial or retail conversions can also raise lender concerns about lease structure and ground rent that don’t apply to true new build houses.
Yes — most mainstream lenders offer mortgages on Shared Ownership new builds, with Halifax, Nationwide, Barclays and several others having dedicated Shared Ownership product ranges. Deposit requirements on Shared Ownership are typically lower in absolute terms because you’re only mortgaging your share of the property (commonly 25–75% of the full value). Many lenders accept 5% deposits on Shared Ownership new builds. The key checks are scheme approval status, the housing association’s financial standing, and stair-casing rules.
The mortgage product itself is usually the same — same rates, same fees, same fixed-rate periods — but new build cases often have specific operational differences. Extended offer validity (nine months or more on some lenders), higher minimum deposit on flats, capped developer incentive allowances, and the requirement for an approved warranty provider. Some lenders also have site exposure limits restricting how many units they’ll lend on within a single development.
Yes on houses — 90% LTV (10% deposit) and 95% LTV (5% deposit) are both achievable on new build houses with mainstream lenders including Halifax, Santander, NatWest, TSB and Nationwide. On new build flats, 90% LTV is widely available but 95% is much more restricted — Santander is one of the few mainstream lenders accepting 5% deposits on new build flats. Skipton’s Track Record range can support 100% LTV in qualifying circumstances on both houses and flats.
