How to find the best new build mortgage in England

1. Standard vs new build friendly mortgages

Most mainstream mortgages work for any property, including new builds. Lenders often treat new builds differently:

• Higher deposit requirements: Many lenders cap maximum Loan‑to‑Value lower for new builds (e.g., 85% on houses, 75-90% on flats), meaning you might need 10-25% deposit unless you use a scheme.
• Extended offer periods: Some lenders offer longer offer validity (e.g., 9-12 months) to cover off‑plan build delays. Important if your new build isn’t completed yet.

Typical lenders that are active in new build mortgages in the UK include:

• Santander. New build offers up to 85% on houses.
• Barclays. Around 95% LTV for houses up to a property value of £600,000.
• Halifax. Offers up to 95% LTV on new builds.
• NatWest. Flexible offer length, up to 95% LTV houses.
• HSBC. Typically 85% LTV and willing to approve off plan.

These figures change over time. Always check current product pricing or speak to a broker before committing.

2. Mortgage schemes that help with lower deposits

If saving a big deposit is hard, two major schemes can make new builds more affordable. They influence which mortgages you choose:

Mortgage Guarantee / Deposit Unlock

• Government backed schemes let you get up to 95% LTV (i.e. 5% deposit) on new builds with participating lenders.
• Deposit Unlock covers properties up to certain values (often £750,000) and is strong for both first time buyers and home movers.

These schemes can broaden the “best” mortgage shortlist significantly because they make higher LTV mortgages more available than they otherwise would be.

3. Types of mortgage you might choose

When comparing specific mortgage products, most come in three main flavours:

Fixed‑rate mortgage

• Your interest rate (and monthly repayment) stays the same for a set term (e.g., 2, 3, 5 years).
• Good for budgeting and if interest rates might rise.

Tracker mortgage

• The rate moves with the Bank of England base rate plus a margin.
• Can be cheaper if interest rates fall, but payments are less predictable.

Green mortgage

• Some lenders offer lower rates or incentives (e.g., cashback) for energy efficient homes and new builds often qualify with high EPC ratings. Learn more about green mortgages here.

There’s no always best choice but fixed‑rate deals are often recommended for new builds. Especially if you buy off‑plan and want predictable costs through the build and early ownership.

Things to consider doing before you pick one

• Speak to a mortgage broker: They compare hundreds of lenders and can find products regular high street banks might not show.
• Get a mortgage in principle early: For new builds this helps secure your deal and shows developers you’re serious.
• Check offer validity: If your build is delayed, you might need a long offer term product or an extension.
• Budget for extras: Stamp duty, solicitor fees, potential ground rent/management charges aren’t included in the mortgage but add to your cost.

In summary

There’s no single “best mortgage,” but for new builds in England, look for a product that:

• Offers the lowest realistic interest rate for your deposit level
• Has long offer validity if buying off‑plan
• Can be backed by 95% LTV schemes like Mortgage Guarantee or Deposit Unlock if needed
• And suits your personal finances (fixed vs tracker).

A mortgage broker experienced with new builds can be especially valuable because lenders differ significantly in how they price and manage new‑build purchases.