First-Time Buyer New Build Mortgage
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Nadia Hossain
Job Title: Partner | Mortgage Adviser
First-Time Buyer New Build Mortgage
Nadia Hossain explains how the new build mortgage process works for first-time buyers.
Podcast approved by The Openwork Partnership on 09/12/2025.
What are the requirements for getting a mortgage on a new build as a first-time buyer?
To get a mortgage on a new build as a first-time buyer, you just need to meet the same criteria as for any mortgage. There isn’t anything specific or special – there are just some extra checks for new builds.
Typical lender requirements will include good credit history, stable income, proof of affordability and evidence of deposit. The usual documentation will also be needed.
Lenders do often treat a new build property as slightly higher risk due to potential depreciation, build delays or uncertainty around valuation. Because of that, they may have stricter income or Loan to Value thresholds than on older homes.
However, if you qualify as a first-time buyer – so you’ve never owned a residential property before in the UK or abroad – you get certain benefits like potential stamp duty relief and access to first-time buyer mortgage products.
Some lenders will lend more than is standard based on your income, to help first-time buyers get on the ladder.
How much deposit do I need for a mortgage on a new build property? Are there any differences if you are a first-time buyer?
There may be slight differences with some lenders just because it’s a new build property.
For new build houses, many lenders do still accept a 5% deposit under some circumstances. However, more commonly, deposits of 10% to 15% are expected on new builds.
With new build flats, there are often higher deposit requirements of 15% to 25% or more, depending on your situation, circumstances and the lender.
For a first-time buyer, the above deposit rates do apply, but some lenders may be more conservative on new builds. You may need a larger deposit than you’d expect for an older property.
Can I use government schemes to get a mortgage on a new build?
Yes, and some government-backed or builder industry schemes support new build purchases. An example is Deposit Unlock, provided by participating house builders and lenders. It allows buyers to purchase select new build homes with a 5% deposit, which makes a mortgage more accessible.
There’s also First Homes, which offers new build homes at a discount of 30% to 50% below market value, which reduces the price – and therefore the deposit and mortgage amount required.
Then there is shared ownership, where you buy a part-share in a home and pay rent on the rest. That may also be offered on new build developments, lowering the deposit and mortgage you need upfront.
Older schemes, such as certain phases of Help to Buy, have closed or are no longer available for new applicants. You can use government or builder-backed schemes where they apply, but availability depends on the scheme, the developer and the lender [information correct at the time of recording in November 2025].
What types of new build properties can I get a mortgage for as a first-time buyer?
As long as the property is a standard residential new build house or flat, and meets the lender’s and scheme’s criteria, you should be able to get a mortgage.
That includes new build houses – terraced, semi-detached, detached, etc. and new build flats or apartments – one bed, two bed or larger. Mortgages for flats often come with stricter deposit and Loan to Value requirements.
You can purchase within any residential development, provided it uses standard construction. There’s no special restriction for first-time buyers to only get houses or flats – both are generally eligible.
What should I consider when choosing a new-build mortgage adviser?
I’m slightly biased, but I do take pride in my role. I’ve been in the financial industry for over 20 years – and not just in mortgages. I’ve worked in subprime, prime, high street lenders, brokerages and underwriting. So I’ve got very broad experience to offer my clients.
It can be a daunting process for first-time buyers. But that daunting process is my headache – not yours. We see all our clients through their mortgage journey and let them relax.
When selecting a mortgage adviser for a new build purchase, it helps to pick someone like myself, with access to a wide range of lenders, not just a small panel. That makes it easier to find a lender that’s comfortable with new build mortgages.
Not all lenders treat new builds the same. We know which lenders accept lower deposits or deal with off-plan new build valuations. I’ve recently bought a new build myself, so I understand what it’s like for buyers. We advise on special schemes such as Deposit Unlock, shared ownership and other builder-backed initiatives.
I anticipate and manage timescales and deadlines – such as exchange of contract deadlines, valuation timing and mortgage offer expiry. On new builds, lenders do offer a longer mortgage offer expiry because the commission date’s not always permanent. There may be delays to you getting the keys.
Choosing the right broker can make the difference between a stress-free process and a last-minute scramble.
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We manage a range of customer circumstances from first-time buyers, home movers, new build purchases, remortgages and debt consolidation. Whatever your financial requirements are, we can assist you.
Are there any special considerations or terms and conditions to be aware of as a first-time buyer on a new build property? What are the benefits and drawbacks of new build homes?
New builds often attract builder or government incentives, such as discounts and low deposit schemes, making them more accessible to first-time buyers than some older properties. Generally, there is no property chain, which is an advantage. A developer is selling directly, which can speed up buying and completion.
New builds need fewer immediate repairs or updates on fixtures, bathrooms or kitchens, which can save cost and hassle compared to older homes. You also normally have really good energy efficiency – normally rated B or above.
Downsides include the fact that lenders are often more conservative with new builds, especially flats. They require higher deposits for a lower Loan to Value – so you may need more cash upfront.
New build mortgages often come with tight timescales, so you may be required to exchange contracts within 28 days of reservation. Mortgage offers for new builds may last only six to nine months, or up to a year in some cases. That can be a problem if the property is being bought off-plan and construction is delayed.
If your mortgage offer expires, you might need to reapply, which risks changes in interest rates or even rejection if your circumstances have changed.
Sometimes these homes carry a new build premium. You may pay more than for a similar resale property. Combined with modest deposits, this can increase the risk of negative equity if property values fall – but many lenders price this risk into strict lending criteria.
How long does the mortgage application process typically take for a new build property?
The mortgage completion process for a new build can take around four to six weeks in straightforward circumstances.Some specialist broker and adviser sources suggest that the mortgage offer stage, from application to offer, can take two to three weeks. But the completion phase, which is the legal work, final valuation and developer handover, may stretch the overall process.
It often takes six weeks to three months from reservation to completion. A lot depends on who you’re purchasing from, but for first-time buyers, the process is broadly the same. There’s no formal difference at all.
However, new build-specific factors like valuation timing, building completion, and mortgage offer fidelity can make timing more critical. That’s all the more reason to be prepared in advance.
How do I get a mortgage on a new build property as a first-time buyer? What are the first steps?
First you need to check that you qualify as a first-time buyer – with no previous home ownership in the UK or abroad.
Secondly, save up for the deposit and additional costs, like your solicitors. Depending on lender requirements and whether you’re using a scheme, you will likely need between 5% and 15% as a deposit. You also need to factor in stamp duty and other purchase costs.
The next stage is to get a Mortgage in Principle, also known as an Agreement in Principle, to show developers you’re serious and that your mortgage is likely to be approved. Most developers need this, and I can provide it for you.
You then choose a property and reserve it with the developer. You may need to pay a reservation fee. Once that’s done, you apply for a mortgage with a full application. The lenders assess income, credit, deposit and affordability. You then provide the required documentation to confirm your income, ID, etc.
After the mortgage application, the valuation and survey of the new build takes place, where lenders’ surveyors ensure the new build meets their standards and the valuation matches the selling price.
Next it gets to exchange of contracts, where you sign legal documents to commit to purchase. That’s often within 28 days of reservation. Completion is where a new build is finished, the legal checks are done, the funds are transferred, keys handed over and the mortgage begins.
If you’re using a low deposit or scheme-backed mortgage like Deposit Unlock, make sure you understand the scheme’s terms and the builder and lender requirements.
You’ve demonstrated throughout how a mortgage adviser can help. Is there anything else you’d like to add?
As a broker specialising in new build mortgages, we know which lenders accept lower deposits for new builds, and which participate in schemes like Deposit Unlock.
We can help coordinate the timescales and even help you apply for relevant schemes. We give advice and make sure you meet the eligibility requirements.
For a first-time buyer looking at a new build, talking to a good broker is strongly advisable.
If you go for a low deposit new build mortgage, there is a risk of the value dropping, especially in the first few years. We can explain the risks involved. New builds sometimes devalue or settle after purchase, and this can lead to negative equity if you borrowed 95% of the purchase price.
You also need to ensure you understand the warranty, the build quality and snagging issues. Sometimes buyers face unfinished snags and build defects – and this is something I have personally faced. It may cost £200 to £300, but getting a snagging report is the best thing you can do, especially as a first-time buyer.
Usually developers have a timescale of up to two years to fix all those issues – but if you’ve got a snagging report, there’s no excuse. A lot of people get the snagging done before they move in – and that way a lot of the issues can be sorted in advance.
Do compare a new build with resale properties, because sometimes a slightly older resale home might be more stable in value. It may be cheaper per square foot and come without the risk of developer delays and new build premiums.
On the other hand, a new build offers modern energy efficiency, reduced maintenance and new fixtures, which keep energy and maintenance costs down. Overall, new builds have less risk of immediate repairs and are easy to live in.
Key Takeaways:
- Lenders often view new build properties as slightly higher risk, which can lead to stricter income or Loan to Value (LTV) requirements compared to older homes.
- While a 5% deposit may be accepted for some new build houses, a deposit of 10% to 15% is more common, and 15% to 25% or more is often expected for new build flats.
- Schemes such as Deposit Unlock, First Homes (offering 30%-50% below market value), and Shared Ownership are available to help first-time buyers purchase new builds.
- The process often involves tight deadlines, such as a requirement to exchange contracts within 28 days of reservation. Mortgage offers typically last only six to nine months, which can be problematic if construction is delayed.
- It is strongly recommended to use a mortgage adviser to navigate the complexities of specific lenders, manage critical timescales, and advise on risks such as potential negative equity.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
Approved by The Openwork Partnership on 09/12/2025.
