New Build Mortgage Lenders Compared: Which Banks and Building Societies Lend on New Builds in 2026?

Why Lender Choice Matters More for New Builds

For a standard resale property purchase, almost any lender on the market will consider your application. For new builds, the field narrows significantly. Here's why:

• New build premium risk — lenders know new builds sell at a premium to resale prices. If you default early, they may struggle to recover the full loan amount through repossession and sale.
• Valuation uncertainty — without extensive comparable sales data, new build valuations carry more risk for the lender.
• Construction risk — off-plan properties aren't built yet. Build delays, specification changes, and developer financial difficulties all add risk.
• Developer quality — some lenders maintain approved developer panels and will only lend on properties built by developers on their list.

The result is that your choice of lender isn't just about the best rate — it's about finding a lender who will actually approve your new build purchase.

Major Lender New Build Policies

The following overview covers the major UK mortgage lenders' general new build policies. Specific criteria change frequently — always verify current terms with the lender or a broker.

High Street Banks

Specialist and Challenger Lenders

LTV limits and policies change regularly. These represent general guidelines — individual applications may be assessed differently. Always check current criteria with the lender or your broker.

Key Differences Between Lenders for New Builds

1. Maximum LTV (Loan-to-Value)

This is the single biggest differentiator. Where most lenders offer 95% LTV on resale properties, new builds are typically capped at 85-90%.

• 85% LTV lenders — you need a 15% deposit. On a £300,000 property, that's £45,000.
• 90% LTV lenders — you need a 10% deposit. On a £300,000 property, that's £30,000.
• 95% LTV on new builds — rare. A few lenders offer this on selected developments or through specific schemes, but availability is limited and often comes with higher rates.

The LTV difference between 85% and 90% is significant for first-time buyers. On a £300,000 home, it's the difference between needing £45,000 and £30,000 for the deposit — a £15,000 gap that could delay your purchase by years.

2. Offer Validity Period

For off-plan purchases, the mortgage offer needs to remain valid until your property is built and ready to complete. Standard offers last 6 months, which is often not enough.

• 6-month validity — the standard. Works for ready-built or near-complete properties. Tight for anything with more than 3-4 months until completion.
• 9-month validity — offered by some building societies specifically for new builds. Provides a useful buffer.
• 12-month validity — rare but available from a few lenders. Essential for early off-plan purchases.
• Extensions — some lenders will extend an expiring offer by 3-6 months without a full reassessment. Others require a complete new application.

3. Construction Type Restrictions

Most new builds in the UK use standard brick-and-block or timber frame construction, which nearly all lenders accept. However, some developments use non-traditional methods:

• Timber frame — accepted by most lenders, but some require the warranty provider to specifically cover the timber frame element
• Steel frame — accepted by many lenders, but some have restrictions on specific systems
• SIPs (Structural Insulated Panels) — growing in popularity for new builds. Fewer lenders accept these; building societies tend to be more flexible than high street banks.
• ICF (Insulated Concrete Formwork) — gaining acceptance but still restricted with some lenders
• Modular/offsite construction — the most restrictive category. Some lenders have specific modular lending criteria; many don't lend on modular properties at all.
• Cross-laminated timber (CLT) — used in some modern apartment blocks. Limited lender acceptance.

If your new build uses anything other than standard brick-and-block or timber frame, check lender acceptance before you start your application.

4. Developer Panels and Approved Lists

Some lenders maintain a list of approved developers and will only lend on properties built by developers on their panel. Others will lend on any new build property that meets their general criteria.

• Panel lenders — typically accept all major national developers (Barratt, Taylor Wimpey, Persimmon, Bellway, etc.) but may not accept smaller regional or bespoke developers.
• Non-panel lenders — assess each property individually regardless of the developer. More flexible but may require additional information about the builder.

If you're buying from a smaller developer, check with your broker which lenders will accept them. Don't assume.

5. Developer Incentive Handling

All lenders require developer incentives to be declared. But how they treat them differs:

• Incentives up to 5% of the purchase price — most lenders ignore these for LTV purposes. A £15,000 incentive package on a £300,000 home doesn't affect your mortgage.
• Incentives between 5% and 10% — many lenders reduce the property value for lending purposes by the incentive amount. This effectively increases the deposit you need.
• Incentives above 10% — most lenders won't proceed. The incentive is considered so large that it distorts the property's true value.

Non-monetary incentives (upgraded kitchen, flooring, landscaping) are treated differently by different lenders. Some consider them as part of the property specification (not an incentive). Others include them in the incentive calculation. Your broker should check with the specific lender.

6. Flat vs House Treatment

Many lenders apply stricter criteria to new build flats than houses:

• Lower maximum LTV (often 75-85% for flats vs 85-90% for houses)
• Minimum floor area requirements (some lenders won't lend on flats below 30 sq m)
• Additional cladding and fire safety checks on apartment blocks (post-Grenfell)
• Lease length requirements (most require 70+ years remaining at minimum)
• Ground rent restrictions (many won't lend where ground rent exceeds 0.1% of property value or includes escalation clauses)

Broker vs Direct: How to Access the Best Lenders

You can apply for a new build mortgage directly with a lender, or through a mortgage broker. For new builds, a broker is almost always the better choice.

Why Brokers Add Value for New Builds

• Market knowledge — a good broker knows which lenders are currently lending on new builds, at what LTV, and with what restrictions. This changes frequently.
• Access to exclusive deals — some lenders (like Accord, Platform, Kensington) only offer mortgages through brokers, not directly to consumers
• Down-valuation management — if one lender down-values, a broker can quickly resubmit to another lender whose panel surveyor may value more favourably
• Incentive advice — a broker can check how different lenders treat the developer's incentive package and find the one that's most favourable for you
• Construction type expertise — if your new build uses non-standard construction, a broker knows which lenders will accept it
• Offer expiry management — a broker tracks your offer validity and manages extensions or reapplications proactively

Types of Broker

• Whole-of-market — can recommend products from across the entire market. This is what you want.
• Multi-tied — can recommend from a panel of selected lenders. Less comprehensive but can still offer good options.
• Developer-appointed — some developers have an in-house or recommended broker. They may be competent but have a potential conflict of interest. Getting a second opinion from an independent broker is always worthwhile.

Broker Fees

Broker fees typically range from £0 (fee-free, earning commission only from the lender) to £500-£1,000 for a paid broker who may charge a fee but rebate their commission to get you a lower rate. Both models have merit — what matters is the total cost of the mortgage, not just the broker's fee structure.

For a detailed guide on comparing the total cost of different mortgage deals, see our best mortgage deal guide.

Post-Grenfell Lending on New Build Flats

Since the Grenfell Tower fire in 2017, lenders have become significantly more cautious about lending on apartment blocks. For new build flats, this means:

• EWS1 (External Wall System) forms — may be required for blocks above a certain height, confirming the cladding system is safe. Most new builds post-2018 should comply with current regulations, but lenders still require confirmation.
• Buildings over 11 metres (4+ storeys) — additional scrutiny on external wall materials, fire safety measures, and building safety compliance.
• Buildings over 18 metres (7+ storeys) — the most stringent requirements. Lenders require comprehensive fire safety documentation.
• Developer responsibility — for new build flats, the developer should provide all necessary fire safety documentation. If they can't, some lenders will decline the application.

If you're buying a new build flat in a block above 4 storeys, discuss fire safety documentation with your solicitor and broker at the earliest stage. Don't wait for the lender to flag an issue — be proactive.

Self-Build and Custom-Build Mortgages

If you're building your own home (rather than buying from a developer), the mortgage market is very different. Self-build mortgages release funds in stages as the build progresses, rather than as a single lump sum at completion.

• Arrears stage payment — funds are released after each build stage is completed and inspected. You finance each stage upfront, then claim back.
• Advance stage payment — funds are released at the start of each build stage. More helpful for cash flow but fewer lenders offer this.
• Typical stages — land purchase, foundations, wall plate, roof on, first fix, second fix, completion.

Self-build mortgages are specialist products available from a limited number of lenders. A broker with self-build experience is essential.

Remortgaging a New Build

When your initial mortgage deal ends (typically after 2-5 years), you'll need to remortgage to avoid the lender's expensive SVR. New build remortgaging has one potential complication: the new build premium.

• When you remortgage, the lender will revalue the property
• If the property hasn't appreciated enough to offset the new build premium, the valuation may be similar to or lower than what you originally paid
• This could limit your LTV options and the rates available to you
• In a rising market, this is less of an issue. In a flat or falling market, it can be significant.

The good news: by the time you're remortgaging (2-5 years in), you've also been repaying the mortgage, which increases your equity and lowers your LTV. The combination of some capital repayment plus even modest price growth usually provides enough equity for competitive remortgage options.

Key Takeaways

• Not all mortgage lenders accept new builds — check before applying
• Most lenders cap new builds at 85-90% LTV, compared to 95% for resale properties
• Offer validity is critical for off-plan purchases — seek lenders offering 9-12 months
• Non-standard construction types significantly limit lender options
• Developer incentives above 5% of the purchase price affect how much you can borrow
• New build flats face additional fire safety and cladding requirements
• A whole-of-market mortgage broker with new build experience is the most effective way to navigate the restricted lender landscape
• For help choosing the right mortgage type, see our mortgage types guide
• For the full application process, see our step-by-step mortgage guide