New Build Warranties for a Mortgage: What Buyers Need to know

If you own a new build, or you’re thinking about buying one, you’ve probably noticed that the lending criteria can differ slightly from pre-owned properties. From deposit requirements to site-wide lending limits and, importantly, new build warranties, there’s a lot to consider before you move forward with your purchase.

At Strive, we specialise in new build mortgages and understand the nuances that can make or break an application. One area that often causes confusion is the warranty — what it is, why it’s needed, and how it affects mortgage eligibility. Let’s take a closer look.

What is the definition of a New Build?

Lenders typically define a new build as a property that has been newly constructed, converted, or extensively refurbished within the last two years — and has never been lived in before.

This definition matters because lenders apply specific rules and risk assessments to new build properties. For example, they often require larger deposits (typically 10% for houses and up to 15%–20% for flats) and rely heavily on the structural warranty to protect both the buyer and the lender against defects or construction issues.

It’s also worth noting that these warranties can be required for lending purposes until the lender no longer deems the property a new build. In some cases, warranties may also be needed for subsequent remortgages, not just the initial purchase.

What is a new build warranty and why is it needed?

A new build warranty is essentially an insurance policy that covers structural defects in a newly built home. Most warranties last for 10 years, offering peace of mind that if something goes wrong with the build — such as foundation issues or structural faults — the homeowner is protected.

For mortgage lenders, the warranty isn’t just reassurance; it’s a requirement. Without an approved warranty in place, many lenders simply won’t release funds, as the warranty mitigates the financial risk associated with potential build defects.

Which warranties do lenders accept?

The most common and widely recognised new build warranties include:

• NHBC (National House Building Council) – The UK’s largest and most accepted warranty provider.
• LABC Warranty – Backed by local authorities and accepted by most mainstream lenders.
• Premier Guarantee – Common on large developments and typically lender-approved.
• Build-Zone and Checkmate – Independent providers accepted by a range of lenders.
• Zurich (historic) – Once a major provider, though no longer issuing new policies. Existing Zurich warranties may still be accepted.
• CRL Management, Global Home Warranties, PCC, Protek – Used on smaller or independent developments; acceptance varies between lenders.

However, not all warranties are created equal. Some smaller or niche providers might not be recognised by major banks or building societies. Additionally, how and when the warranty was issued matters — lenders generally prefer warranties that were conducted during the build process, rather than retrospectively after completion.

That said, some lenders will consider retrospective warranties, provided they meet specific inspection and underwriting standards.

Which new build warranties are not accepted by some lenders?

While most major lenders will accept well-known warranties such as NHBC,others take a stricter approach. Certain lenders will not lend on properties covered by less common warranty providers like ICW or Bikesure.

Below is a breakdown showing which lenders currently won’t lend against specific warranty types:

Zurich Municipal – Lenders That Won’t Accept

Although Zurich Municipal warranties were once widely accepted, some lenders have since withdrawn support. Many lenders now only accept legacy Zurich policies that meet specific inspection and underwriting standards.

IWC

AIDIS

Building Life Plans

Bikesure

Lender acceptance Retrospective New Build Warranties

A retrospective warranty is a structural warranty issued after the build has been completed — rather than during construction. These are often put in place when the original builder didn’t arrange a warranty, or when a property changes hands shortly after completion without coverage in place.

While retrospective warranties can still provide protection for the homeowner, many lenders treat them with caution. The key concern is that inspections weren’t carried out during the build itself, meaning any structural issues that existed before completion might go unnoticed.

Because of this, a number of mainstream lenders don’t accept retrospective warranties at all, while others will consider them on a case-by-case basis if the inspection process was thorough and insurance backing is strong.

Professional Consultant’s Certificates (PCCs)

A Professional Consultant’s Certificate (PCC) is an alternative to a structural warranty, usually issued by an architect, engineer, or surveyor who has supervised the build from start to finish. The certificate confirms the property was constructed in accordance with approved plans and building regulations, and that the consultant carries adequate Professional Indemnity (PI) insurance to cover potential defects.

While PCCs can be suitable for smaller self-builds, conversions, or one-off developments, they don’t offer the same protection as a full 10-year structural warranty. They rely entirely on the consultant’s oversight and insurance rather than a separate insurer-backed guarantee.

As a result, some lenders accept PCCs, while others refuse them entirely.

Can You Get a PCC Retrospectively?

In some cases, yes — a Professional Consultant’s Certificate (PCC) can be issued retrospectively, but it depends on the consultant and the lender. The consultant must be able to evidence oversight of the build or carry out detailed post-completion checks, supported by adequate Professional Indemnity insurance.

However, many lenders remain cautious, as a retrospective PCC means the consultant wasn’t involved throughout the build — reducing their confidence in the property’s structural integrity. Some lenders are happy to proceed, while others won’t accept retrospective PCCs at all.

Below is a summary of lenders that do and don’t currently accept retrospective PCCs.

Beyond Warranties: Understanding New Build Lending Criteria

Warranties aside, there’s a whole other layer of criteria that comes with new build mortgages. From minimum deposit requirements and maximum lending limits on developments to extended mortgage offer periods and stricter affordability checks, lenders apply extra caution when it comes to new homes.

This is where Strive comes in. New build mortgages are our bread and butter — we know how each lender approaches deposits, site aggregates, and policy nuances. Our experience means we can decipher complex criteria and match you with the right lender to make your new build purchase as straightforward as possible.

Speak to Strive – New Build Mortgage Specialists

At Strive, we specialise in new build mortgages — whether you’re buying your first home, moving, or remortgaging. Our team understands every detail that makes a difference, from deposit criteria and site lending limits to warranty acceptance and developer incentives.

Get expert advice and a clear strategy tailored to your build and budget.

Contact Strive’s new build mortgage specialists today and give your new build mortgage the best possible chance of success.