Getting a Mortgage on a New Build as a First-Time Buyer: Your Complete Guide
If you're a first-time buyer looking at new builds, you're probably wondering:
What deposit do I need?
Which schemes can I use?
Will I really get approved in time for the exchange deadline?
Here's what you need to know: getting a mortgage on a new build isn't as complicated as you might think. The process is very similar to buying an existing home, but there are a few extra details you'll need to understand.
We're seeing an increase in new build purchases within Eastbourne and surrounding areas, such as Brighton, Lewes, Stone Cross and Hailsham, as more first-time buyers discover the benefits of buying new. Many first time buyers underestimate the cost of refurbishing a property - and buying new eliminates the need for any major refurbishments.
How New Build Mortgages Work
The fundamentals are the same as with older properties; lenders assess affordability using your income and outgoings. Most will lend around 4.5x your annual income, and some specialist products allow you to stretch to 6x, for the person.
The main differences come down to deposit requirements, timelines, and construction type.
Deposit Requirements: What to Expect
New Build Houses
Generally treated the same as existing homes, meaning 5% deposit mortgages are widely available.
New Build Flats
This is where lenders get more cautious. While 5% deposit deals exist, they're less common. Most lenders prefer 10% or higher deposits, especially on higher value flats or in certain developments.
Pro Tip: A whole-of-market broker can make a big difference here, as we can tell you which lenders are flexible on new build flats.
First-Time Buyer Schemes: What are your options?
New builds offer access to exclusive schemes that aren't available for older properties:
Government & National Schemes
First Homes Scheme provides discounts of 30–70% for local first-time buyers. Shared Ownership lets you buy 25–75% of your home while paying rent on the rest.
Developer & Industry Schemes
Own New lowers your mortgage rate for the initial years. Deposit Unlock allows you to buy with just a 5% deposit on participating developments. Part-Exchange means developers buy your current property to guarantee your sale.
Important: Scheme availability varies by location and builder, so local expertise matters.
Developer Incentives
Many new build developers will offer you an incentive, if you proceed with purchasing a property on their development. The value of an incentive can be up to 5% of the property’s value, and can be used towards your deposit, stamp duty, legal fees or upgrades to the home.
This is areal help to first time buyers in particular, as these incentive can be used to increase your deposit, and subsequently reduce your loan-to-value, which may reduce the interest you pay on your mortgage.
Why Lenders Are Warming to New Builds
Some lenders are now more generous with lending on new builds compared to older homes. The reason? Energy efficiency.
Lower energy bills mean lower household outgoings. Some banks factor this in and may offer a higher loan amount on a new build. It's not universal, but it's becoming more common.
Timing Considerations: Managing the Process
Mortgage offers normally last 6 months, though some lenders extend this to 12 months for new builds. Exchange deadlines are often tight, typically 28–42 days from reservation. Rates may also change while you wait for completion.
Our approach: We apply for your mortgage early for certainty, then switch you to better deals if they appear before completion.
Self-Build vs Developer New Builds
Self-build mortgages are a different product entirely. They typically require 25% or higher deposits, funds are released in stages as work progresses, and there's heavy surveyor oversight.
This guide focuses on buying directly from developers. If you're planning a self-build, you'll need specialist advice.
Choosing the Right Broker for a New Build
What to look for: whole-of-market access (not all brokers can offer this), experience with tight new build timelines, knowledge of local schemes and developer partnerships, and availability including weekends.
At Quanstrom Financial, we've helped hundreds of first-time buyers in East Sussex purchase new builds with confidence. We're fee-free for new build mortgages, available 7 days a week, and experienced in working with developers and their deadlines.
FAQs: New Build Mortgages
Can I get a new build mortgage with a 5% deposit? Yes, but it's more limited for flats. Most lenders prefer 10%+.
Are new builds harder to mortgage? Not really - but lenders are stricter on flats, high-value homes, and modern construction types.
How long does the process take? Most offers are issued in 1–4 weeks, but you'll usually need to exchange in 28–42 days. The date of completion can vary, and your developer will provide you with rough timescales on when the build is due to complete.
Next Steps
Thinking of reserving a new build? Here's what to do:
Get a mortgage in principle before you view. This shows developers you're serious.
Explore local schemes that could boost your affordability. Choose a broker with new build experience – it will be a game changer. Be ready for tight deadlines. Preparation is everything.
Arrange viewings on new build properties and ask for details on any incentives available
Ready to Start Your New Build Journey?
New builds are modern, efficient, and often supported by schemes that make buying your first home more achievable. With the right preparation, the process can be smooth and stress-free.
Call Quanstrom Financial today - we're available seven days a week and offer fee-free consultations for new build mortgages.
Let's turn your new build plans into reality.
