Yes, first-time buyers can get a mortgage on a new build home, and most mainstream lenders are happy to lend on them provided the property is registered with a recognised warranty provider. The application process is largely the same as for any other purchase, but new builds have a few quirks around deposits, developer incentives and running costs that are worth understanding before you reserve a plot.
Key takeaway: New build mortgages work in much the same way as any other first-time buyer mortgage. The main differences are how developer incentives are treated for lending purposes, the warranty and completion timeline, and, for some developments, an ongoing estate charge rather than the ground rent that used to be common.
[[stats: 90+ = Lenders we search across the whole market | 5% = Typical minimum deposit on new build mortgages | 7x = Salary multiple some lenders offer first-time buyers | 10yrs = Standard structural warranty cover]]
If you haven't started budgeting or saving yet, our guide on how to prepare to buy your first property is a good place to start.
Why choose a new build as a first-time buyer?
New builds offer a few genuine advantages for first-time buyers, alongside some trade-offs worth weighing up.
- Energy efficiency - new homes are built to current Building Regulations standards, which typically means lower running costs than an older property.
- Warranty cover - most new builds come with a 10-year structural warranty, commonly from NHBC, though several other providers operate in the UK, covering major structural defects.
- Developer incentive schemes - many developers offer to contribute towards your deposit, legal fees or Stamp Duty, which can make the numbers work more easily (more on how this affects your mortgage below).
- A blank canvas - you're the first occupant, so there's no chain of previous owners' fixtures, fittings or DIY to undo.
The trade-off is usually price: new builds often carry a premium over equivalent resale properties in the same area, and this can affect what a lender's valuer says the property is worth.
What deposit do you need for a new build?
As with any mortgage, how much deposit you need depends on the lender, the property and your circumstances.
- 5% deposit mortgages - available from a number of lenders, including through the Mortgage Guarantee Scheme (see below), though product choice is more limited at this level.
- 10% deposit mortgages - a more widely available level, usually with a better range of rates.
- 15% or more - typically unlocks the most competitive rates on the market.
As of August 2026, the Mortgage Guarantee Scheme is permanently available UK-wide, supporting mortgages up to 95% loan-to-value on homes up to £600,000 through a number of participating lenders. It isn't specific to new builds, but it's often a useful route in for first-time buyers with a smaller deposit.
How do developer incentives affect your mortgage?
It's common for developers to offer incentives to help buyers get over the line - a contribution towards your deposit, legal fees paid, help with Stamp Duty, or similar. These can be genuinely useful, but lenders don't treat them all the same way.
Most lenders will accept developer incentives worth up to around 5% of the purchase price without adjusting their valuation. Go above that figure, and the excess is typically deducted from the purchase price for lending purposes - the lender bases your mortgage on the reduced figure, or the surveyor's valuation if that's lower, rather than the price you've agreed with the developer. That can reduce how much you're able to borrow, or push your effective loan-to-value higher than you'd planned for.
[[table: | Incentive within the typical 5% limit | Incentive above the typical limit ;; How it's usually treated | Accepted at full value | The excess is deducted from the purchase price ;; Price used for lending | The full agreed price | A reduced price, or the valuation if lower ;; Effect on your loan-to-value | Unaffected | Can increase, reducing the mortgages available to you]]
Tip: Different lenders set their own limits and treat different types of incentive differently. Speak to Quanstrom Financial to find out how a specific developer's incentive package will affect your borrowing before you reserve a plot.
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Schemes that can help new build buyers
Shared Ownership
Shared Ownership lets you buy a share of a new build property, typically between 25% and 75%, while a housing association owns the rest. You pay a mortgage on your share and a subsidised rent on the remainder, and can usually "staircase" to buy further shares over time.
- Lower deposit needed, usually calculated on the share you're buying rather than the full property value
- Smaller mortgage and monthly payments than buying outright
- Flexibility to increase your ownership share as your circumstances allow
First Homes scheme
The First Homes scheme lets eligible first-time buyers purchase certain new build homes at a discount of 30-50% below market value, with the discount passed on to future first-time buyers too. It's only available in England, and only on developments where the local council has adopted the scheme, so availability varies significantly by area - check with your local council or a Quanstrom adviser whether it applies to a development you're considering.
Do all lenders accept new builds?
Most mainstream lenders will consider new builds, but they typically check a few specific things:
- Recognised warranty - the property needs to be covered by a recognised 10-year structural warranty, commonly NHBC's Buildmark, though LABC Warranty, Premier Guarantee and others are also widely accepted.
- Completion timescales - lenders set a limit on how long your mortgage offer stays valid before the property needs to complete. Standard offers usually last 3-6 months, but several lenders offer extended validity, sometimes up to 9-12 months, specifically for new builds, recognising that construction can overrun.
- Valuation - because new builds can carry a price premium, the lender's valuer may value the property below the price you've agreed, which can affect how much you're able to borrow.
Good to know: A small but growing number of new homes use off-site or modular construction methods rather than traditional brick and block. Most mainstream warranty providers now cover these methods, but not every lender is comfortable with every construction type - flag this to your adviser early if you know your development uses modern methods of construction.
New build vs resale: what's actually different
The mortgage process itself is much the same whether you're buying new or resale. A few things genuinely differ though, and it's worth understanding them rather than assuming a new build works exactly like any other purchase.
Ground rent
Ground rent used to be a common feature of new build leasehold properties, but the Leasehold Reform (Ground Rent) Act 2022 effectively banned ground rent on new residential long leases in England and Wales. If you're buying a new build today, ground rent is very unlikely to apply - it's still worth double-checking your specific lease, but it's no longer something most first-time buyers need to budget for.
Estate charges and service charges
These two terms get mixed up regularly, and they apply in different situations.
Service charges mainly apply to leasehold properties, most commonly flats, and to Shared Ownership homes. They cover the maintenance of the building itself, such as shared hallways, lifts and the roof.
Estate charges, sometimes called estate rent charges, are more relevant if you're buying a new build house. On many modern estates, the roads, communal green spaces, drainage and street lighting aren't adopted by the local council straight away, or ever, so a management company maintains them instead and recovers the cost from homeowners through an annual estate charge. This can apply to a freehold house too, even though freeholders don't usually pay a service charge.
Ask the developer or your solicitor early on whether the specific development you're looking at has an estate charge, roughly what it costs, and whether the roads and communal areas are likely to be adopted by the council in future. Lenders will factor a confirmed charge into their affordability assessment alongside your mortgage payment.
Buyer protection
An updated New Homes Quality Code came into force in March 2026, covering homes reserved with a registered developer from 2 March 2026 onwards. It gives you access to the independent New Homes Ombudsman Service, free of charge, if you have an unresolved complaint about the buying process or the quality of your new home within two years of completion.
Use the calculator below to estimate your monthly mortgage repayment on a new build. If the development has a confirmed estate charge, add that on top to see your full monthly housing cost.
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Conveyancing and timeline: what to expect
Step 1: Reserve the property. You'll usually pay a reservation fee, which is often refundable if the developer goes into administration before completion, though it's worth checking the specific terms.
Step 2: Apply for your mortgage. You can apply before the property is finished, based on the plans and specification, and the lender's valuer will use comparable local sales to assess the price. It's worth getting an Agreement in Principle and checking your credit score before you reserve, so you know your budget and reduce the risk of surprises later on. If you're self-employed, our guide to getting a mortgage when self-employed covers the documents you'll need.
Step 3: Exchange and completion. Completion happens once the property is finished and the developer confirms a completion date, often at fairly short notice. Your solicitor coordinates the handover and the release of funds.
Step 4: Snag and settle in. Before or shortly after completion, inspect the property carefully for snagging issues - minor defects like paint finish, fittings or doors that don't close properly - and report them to the developer, who is obliged to fix genuine defects under the warranty and New Homes Quality Code.
What to ask when viewing a new build
- Which warranty provider covers the property, and for how long?
- What is the expected completion date, and how firm is it?
- What incentives are on offer, and how will they affect my mortgage?
- Is there an estate charge, and roughly how much is it likely to cost?
- Are there any restrictions on letting the property out in future?
Frequently asked questions
Do new build homes have ground rent?
Very rarely. The Leasehold Reform (Ground Rent) Act 2022 banned ground rent on new residential long leases in England and Wales, so most new builds sold today won't carry it. Always check your specific lease to confirm.
What's the difference between an estate charge and a service charge on a new build?
A service charge typically applies to leasehold flats and Shared Ownership homes, and covers maintenance of the building itself. An estate charge applies more broadly, including to freehold houses, and covers the upkeep of roads, drainage and communal areas on the wider development, particularly before the council formally adopts them.
How much can a developer contribute towards my deposit?
Most lenders will accept incentives worth up to around 5% of the purchase price, such as a deposit contribution, legal fees or a Stamp Duty contribution, without adjusting their valuation. Incentives above that level are often deducted from the purchase price for lending purposes, which can reduce how much you're able to borrow. Speak to Quanstrom Financial to find out how a specific incentive package will be treated.
Do I need a snagging survey on a new build?
It's not a mortgage requirement, but it's sensible. New build homes are covered by a structural warranty and, more recently, the New Homes Quality Code, but that doesn't automatically cover cosmetic snagging issues - a snagging inspection helps you catch and report these early. Read our guide on which survey to get when buying a house for more detail.
Can first-time buyers get a 5% deposit mortgage on a new build?
Yes, in many cases. A 5% deposit mortgage may be available directly from a lender or through the Mortgage Guarantee Scheme, and some developer deposit-contribution incentives can effectively reduce what you need to find yourself, though the same 5% incentive cap outlined above still applies.
Can I get a mortgage on a new build home if I'm on a visa?
Yes, absolutely. A number of lenders offer mortgages to visa holders, including on new build homes, though which lenders and how much you can borrow depends on your specific visa type, income and deposit. Read our complete guide to getting a mortgage on a visa for the full detail.
How long is a mortgage offer valid on a new build?
Standard mortgage offers are typically valid for around 6 months, and because new builds often complete later than planned, some lenders extend their offer validity to around 9 months for new build purchases.
What happens if the developer's completion date slips?
If completion moves beyond your offer's validity, your lender may extend the offer or ask you to reapply, and your circumstances will usually be rechecked - one more reason to keep your finances steady between exchange and completion.
Do I need life insurance to get a mortgage?
No, life insurance is not a legal requirement and lenders do not generally insist on it, although buildings insurance is required. Quanstrom Financial strongly recommends life cover to anyone whose family depends on their income, because a mortgage becomes a debt of your estate if the worst happens. Our guide on whether you need life insurance for a mortgage explains what is genuinely required and what is worth considering.
Written by Toby Quanstrom CeMAP, Director at Quanstrom Financial, a whole-of-market mortgage broker based in Eastbourne, East Sussex.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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