New build homes
New build mortgage advice
Buying a brand new home comes with its own mortgage rules: limits on developer incentives, offers that need to outlast the build, and different lending on flats and houses. Quanstrom Financial, a whole-of-market mortgage broker in Eastbourne, helps buyers of new build homes across East Sussex and beyond find a lender that fits.
- Deposits from 5% with some lenders, subject to criteria
- Developer incentives checked before you reserve
- Free first consultation, with no obligation
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New build mortgages
What are you looking for?
Pick a topic to jump straight to it, or read on for the full picture.
Developer incentives
Cashback, paid Stamp Duty and other offers. See how much many lenders accept, and what can happen above 5%.
How much deposit?
Deposits from 5% with some lenders, subject to criteria. The key figures at a glance.
Flats and houses
Limits on new build flats vary more between lenders than on houses, and why the lender you choose matters.
Offer deadlines
How long new build mortgage offers usually last, and what could happen if the build runs late.
Warranty and snagging
The 10-year warranty lenders look for, the valuation, and getting snags put right.
Schemes and Your First Home
The proposed Your First Home scheme, First Homes and Shared Ownership in brief.
New build or older home?
Running costs, renovation and the trade-offs worth weighing up before you choose.
Your questions answered
Common new build mortgage questions, from deposits to when to apply.
At a glance
New build mortgages in numbers
95%
The highest loan to value many lenders offer on new build houses, meaning a 5% deposit, subject to criteria.
10+
Years of experience helping buyers arrange mortgages on new build homes.
12
Months a new build mortgage offer could last with some lenders, including extensions, subject to checks.
5%
The share of the price in developer incentives many lenders accept before reducing what they lend against.
Based on major UK lenders' published criteria, October 2026. Lender criteria vary and change often.
How it works
Buying a new build, step by step
Six steps from choosing a plot to collecting the keys. We'll keep the lender, developer and solicitor moving at every stage.
Free consultation
Tell us about the development and your plans. We'll explain what you may be able to borrow before you reserve.
Agreement in principle
An early indication of what a lender may lend. Developers often ask to see one when you reserve.
Reserve your plot
You pay a reservation fee and the developer usually sets a short deadline to exchange contracts.
Application and valuation
We apply with a lender whose rules suit the development, and any incentives are declared to the lender.
Exchange contracts
You pay your deposit and commit to buy, often while the home is still being built.
Complete and move in
When the build is finished the developer gives notice to complete. Then check your new home for snags.
New build lending
What's different about a new build mortgage
Most lenders are happy to lend on new builds, but a few rules tend to catch buyers out.
Houses and flats
Many lenders offer up to 95% loan to value on new build houses. Limits on new build flats vary more: some lenders go to 95%, while others set a lower maximum, so the lender you choose could change the deposit you need.
Offer deadlines
Your mortgage offer needs to last until the home is finished. New build offers often run for 6 months or more, and many lenders allow extensions, in some cases up to 12 months in total, subject to checks.
Warranty and snagging
Lenders usually need a recognised 10-year warranty, such as NHBC, LABC or Premier Guarantee, and their valuer checks the price. Developers registered under the New Homes Quality Code should normally put snags right within 30 days.
Developer incentives
How lenders treat developer incentives
Cashback, help with Stamp Duty or paid legal fees can make a new build more affordable. Many lenders accept incentives worth up to around 5% of the price. Above that, some lenders reduce the price they lend against, which could mean a bigger deposit, and others may decline the application. On a £300,000 home, the price a lender lends against could look like this.
Read our new build buyer's guideIllustration only, for a lender that deducts incentives above 5% from the price. Some lenders decline instead, and each sets its own limit and method. Based on major lenders' published criteria, October 2026.
Schemes
Schemes that could help you buy a new build
Scheme rules change, and some are only offered by certain developers or lenders. We'll check which ones may be open to you.
Your First Home (proposed)
Announced in September 2026, this proposed scheme is expected to support 2.5% deposits for first-time buyers, backed by a 20% government equity loan, on new builds in England from developers signed up to it. Caps and the start date are due at the Budget on 28 October.
What we know so farFirst Homes
Some new developments in England sell homes 30% to 50% below market value to first-time buyers with a household income of £80,000 or less. Outside London, the discounted price must be £250,000 or less. Availability depends on the local council, so supply varies from area to area.
Shared Ownership
Buy a share of a new home, usually between 25% and 75% (as little as 10% on some newer homes), and pay rent on the rest. Household income needs to be £80,000 or less outside London. You may be able to buy more shares later, known as staircasing.
Weighing it up
New build or an older home?
Many buyers compare asking prices and stop there. The bigger difference often shows up after you move in.
Ready to move into
An older home can need a new kitchen, bathroom, boiler or rewiring before it feels like yours. A new build is finished to a modern standard, so more of your savings can go towards your deposit.
Cheaper to run
Between April and June 2026, 89% of new homes in England and Wales were given an EPC rating of A or B, which can mean lower heating bills than in an older home. Some lenders also offer green mortgage deals on homes rated A or B.
Things to weigh up
You may pay a premium for brand new, build dates can slip, and some estates charge a yearly fee for roads and green spaces. We'll help you factor these in.
Why Quanstrom Financial
Why buyers choose us
- Lenders compared across the marketIncluding lenders that may offer longer offer periods or higher limits on new build flats.
- Incentives checked before you reserveWe'll explain how a developer's offer could affect your mortgage before you commit.
- Deadlines kept on trackJessie keeps your application moving with the lender, developer and solicitor, to help you meet exchange deadlines.
- Local people who know the areaWe follow the new developments around Eastbourne and East Sussex, from Polegate and Hailsham to Newhaven and Lewes. See the areas we cover
As a first time buyer I was very nervous about the process, and didn't know what to expect, but Toby made the process great and effortless.
James C., about TobyNew build mortgage questions
Can't see your question? Call us on 01323 364432 or book a free consultation.
Is it harder to get a mortgage on a new build?
Not usually, but the rules are a little different. Some lenders set a lower loan to value on new build flats than on houses, most limit how much the developer can contribute, and they usually need a recognised structural warranty. Lenders often treat a home as a new build if it's being sold for the first time or was built in roughly the last two years. A mortgage broker at Quanstrom Financial can check which lenders may suit the home you're buying.
How much deposit do I need for a new build?
Some lenders may accept a 5% deposit on a new build house or flat, subject to criteria. Limits on flats vary more from lender to lender, so the lender you choose could change the deposit you need. Our low deposit mortgage guide explains how a bigger deposit could widen your choice.
How long does a mortgage offer last on a new build?
New build mortgage offers often last around 6 months, and some lenders give 9 months from the start. Many allow an extension if the build is delayed, in some cases up to 12 months in total, subject to further checks. If your home won't be ready for a while, it may make sense to look at lenders whose offers run for longer.
Can I use developer incentives?
You may be able to. Many lenders accept incentives such as cashback, paid legal fees or help with Stamp Duty worth up to around 5% of the price. Above that, some lenders reduce the price they lend against and others may decline the application. Developers usually declare every incentive to your lender on a standard UK Finance form, so it's important to tell us about all of them.
When should I apply for a new build mortgage?
Ideally before you reserve. Developers often ask you to exchange contracts within a few weeks of reserving, so having an agreement in principle in place first could save time. Your mortgage offer also needs to cover the expected completion date, which affects which lenders may suit.
What is the Your First Home scheme?
Your First Home is a proposed government scheme, announced in September 2026, for first-time buyers of new build homes in England. It's expected to support 2.5% deposits, backed by a 20% equity loan from the government with an initial interest-free period. Income and price caps, costs and the start date are due to be confirmed at the Budget on 28 October 2026.
How much does your advice cost?
Fees vary depending on your circumstances - get in touch and we'll explain any costs clearly before you proceed. Your first consultation is free and there's no obligation.
Buying a new build?
Book a free consultation before you reserve and we'll explain how the developer's offer could affect your mortgage. We aim to reply the same working day, and there's no obligation.
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