Summary

Buying a new-build home can be exciting, but it often comes with unique challenges when it comes to securing a mortgage. From higher deposit requirements to tighter lender criteria, understanding how new-build mortgages work is essential for buyers looking to make the most of their purchase.

Introduction

Buying a brand-new home, whether a flat in a modern development or a newly built house, appeals to many buyers. You’re the first to live there, everything is fresh, and warranties often cover repairs for years to come. But when it comes to mortgages, new-builds are treated differently by many lenders.

If you’re considering buying a new-build, it’s important to understand how this affects your mortgage application, your deposit, and your long-term options. That’s where the expertise of a broker from Just Mortgages can help.

What Is a New-Build Property?

A new-build is any home that has been newly constructed, or significantly refurbished, and has never been lived in. This includes houses on new estates, apartments in new developments, and conversions of older buildings into modern flats.

Key points about new-builds:

• Properties are often sold “off-plan”, before they’re finished.
• Developers may offer incentives like paying legal fees or including fixtures and fittings.
• Warranties (such as NHBC or similar) usually cover the property for 10 years.

Why New-Build Mortgages Are Different

Lenders see new-builds as a slightly higher risk. This is because:

• Property values can drop in the short term once the home is no longer “brand new”.
• Construction delays can impact mortgage offer expiry dates.
• Flats vs houses: Lenders are often stricter with new-build flats than houses.

What Lenders Usually Require

Requirement	Typical Expectation for New-Builds
Deposit	10–15% for houses, 15–20% for flats (higher than older homes)
Mortgage Offer Length	Standard offers last 6 months, but extensions may be needed if the build is delayed
Developer Incentives	Some lenders reduce how much you can borrow if incentives are included
Valuation	Based on current market value, not the developer’s price

A mortgage adviser can guide you through which lenders are most flexible with new-builds, and how to meet their requirements.

Pros and Cons of Buying a New-Build

Benefits:

• Modern design, energy-efficient, and low maintenance.
• Warranties provide peace of mind.
• Often chain-free, so the process can be quicker.

Challenges:

• Higher deposits required.
• Potential delays in completion.
• Short-term property values may dip after initial purchase.

FAQs about New-Build Mortgages

Can I get a mortgage on a property that isn’t built yet?
Yes, but you’ll usually need a longer offer period or extensions if completion is delayed. A broker can manage this process for you.

Are developer incentives a problem?
Some lenders will adjust the mortgage amount if incentives (like paying stamp duty or gifting furniture) exceed a certain value.

Do I need a bigger deposit for a new-build flat?
Often yes, lenders typically ask for 15–20% compared to 5–10% for older properties.

Are new-builds harder to sell later?
In some cases, yes. A property may lose value once it’s no longer “new”, so it’s important to consider your long-term plans.

How a Just Mortgages Broker Can Help

A Just Mortgages broker can:

• Identify lenders with more flexible criteria for new-build homes.
• Help secure longer mortgage offers to cover potential build delays.
• Explain how incentives affect your borrowing power.
• Ensure your deposit and finances meet lender expectations.

With access to thousands of mortgage products and expert knowledge, Just Mortgages offers personalised support to make buying a new-build as smooth as possible.

Final Thoughts

Buying a new-build can be an exciting way to step onto the property ladder or move into your dream home. But with stricter lender requirements and unique challenges, it pays to get expert advice. With guidance from Just Mortgages, you can navigate the process confidently and secure the right mortgage for your future.

Ready to explore your mortgage options? Click here to contact Just Mortgages today.

Just Mortgages is a trading name of Just Mortgages Direct Ltd which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 24/09/2025.