New Build Home Mover Mortgage
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New Build Home Mover Mortgage
Matt Coulson talks to us about home movers and new build properties.
What’s the market like for home movers and new builds at the moment?
We’re recording this in June 2025 and something that’s attracting interest is the number of houses built each year in the UK. It has become a running conversation, depending on who’s in government. Often a wild target is set and often not quite reached.
In 2024, according to the National House Building Council (NHBC), 204,000 new properties were completed, which was an increase of 8% compared to the previous year. That reflected builders building more, but also an increase in demand from buyers. That’s a real positive.
With new builds, you might be reserving a property that isn’t ready yet. A recent survey suggests that nearly 30% of new build buyers face unexpected delays or complications in their mortgage process.
That paints a picture as to why it’s really important to get new build mortgage advice from somebody who knows what they’re talking about – and importantly, can manage those delays and hold your hand through that process.
What are my mortgage options when moving into a new build home?
It’s very similar to any other purchase application. There are, of course, some nuances and different bits of criteria, but no-one should be scared to explore a new build mortgage.
Broadly speaking, you’re still considering fixed rates, trackers and variables as with any type of mortgage. You’re still potentially looking at a product over two, three or five years.
The first thing that might be a little different is the deposit. Often lenders are stricter on new builds and ask for a slightly higher deposit. There are also schemes that may apply and these do change over time.
Do I need an Agreement in Principle when applying for a mortgage on a new build?
Yes, it’s a huge help. If not for your own knowledge, certainly for the way that a house builder is likely to deal with you. We’re fortunate enough to deal with lots of national house builders and know how they work. Having an Agreement in Principle (AIP) when you discuss a potential reservation on a new build home will put you in a much stronger position.
Ultimately you’re buying directly from the builder as opposed to having an estate agent involved. Having an AIP just demonstrates that you’re organised and ahead of the curve. You’ve approached a lender who’s comfortable with you buying a new build.
So, I would absolutely encourage anybody looking at new builds to see us about getting that AIP before you really get into that conversation with the builder. It’s going to stand you in good stead when it comes to that negotiation.
How long does the new build mortgage application process take for a home mover?
The process itself can take a similar amount of time – generally three or four weeks for a mortgage offer, depending on how busy lenders are. The time that it might take you to get into the property is the key difference.
Because new build mortgages are slightly different, particularly around the deposit, having a conversation early with a mortgage advisor is always recommended. We’re really well-placed to get you that mortgage in place in very good time.
Some developers have rules in place around the time they expect you to exchange contracts. From the time you make that reservation, they may expect you to exchange contracts within 28 days.
By then, you need a mortgage offer in place. The solicitor acting for you in that purchase would probably advise you against exchanging without that offer, which may take three or four weeks.
If you’ve got your AIP beforehand and you’ve been speaking to a mortgage advisor, you’re already halfway there.
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How much can I borrow and what deposit do I need for a mortgage on a new build?
In the mortgage market over the past few years, you could typically borrow around about 4.5 to five times your household income.
But recently, as we speak in June 2025, lenders have been trying to push that where they can, especially with First Time Buyers, people in particular professions or those earning over certain thresholds.
Some lenders out there can offer you 5.5, six or seven times income in some cases. That’s not applicable to everyone, so don’t expect it, but that’s a flavour as to where the market has gone. More people, therefore, can now get a mortgage on a new build than previously.
Normally a lender will need you to have a slightly bigger deposit in new builds. Having said that, numerous lenders are willing to offer 95% on new builds – and even more at 90%. It will depend on your situation, and also whether the builder is going to offer you any incentive.
They might contribute perhaps to your deposit or your stamp duty, or via a scheme to bolster your position. We’re seeing more people enter the new build spaces with a 10% deposit. That could be a combination of their own money and some from a family member or a builder.
It’s encouraging, because often people believe they’ll need a 30% deposit and can only borrow four times their income. So come and have a conversation, because there’s potentially something that we can do.
What are the eligibility criteria for a mortgage on a new build as a home mover?
We’ve covered deposit and income multiples, and the rest is really similar to any other mortgage. Of course there will be some consideration as to what your credit score looks like and your outside commitments beyond this new mortgage.
Do you have any cards, loans or overdraft facilities that cost you money each month? Do you have any dependents in your household? What are they costing you? Are there school fees? Having a good idea of your income and your outgoings is a good start point.
Credit score is easy to see these days – you can sign up online for a trial and see your report. That’s going to play a part in the rates and lenders available to you.
Lenders will also take a look at buying incentives, such as the developer’s deposit contribution or stamp duty. They need to understand the value of that incentive. Talk to your mortgage advisor if you’re unsure about any of these things, because that puts you in a good place ahead of that mortgage conversation.
How can I borrow more money on a mortgage for a new build property?
As you’re approaching the point where you might want to apply for a mortgage, are there loans, debts or cards you can clear? That can get yourself into a position to support a bigger mortgage.
Lenders look at you as a whole, and want to see that your outgoings are not beyond what you can afford. If your committed outgoings are smaller, you’re in a better position to make an application.
You can also focus on your income. We’re seeing more applicants taking on secondary jobs, either employed or self-employed. If you’ve got evidence that this is longstanding and potentially sustainable, lenders will consider more than one income.
Lenders also go back in time a little bit. They want to see something like that in place for normally 12 months plus, and that it’s possible to continue. That means not working a ridiculous number of hours per week, for example.
Lenders are also increasingly embracing what most people know as a guarantor mortgage. We’ve recorded episodes specifically on this, which I’d encourage you to listen to. It’s where you use another person’s income to strengthen that application. These come with complexities and considerations that I won’t list here, but it is something we’re seeing a lot more people do.
Can I port my mortgage when moving into a new build property?
Yes, you can. It would depend on your specific lender and the terms and conditions of your original mortgage offer. One consideration here is the deposit, so it’s worth just having a conversation with your mortgage broker beforehand.
If you’ve got your original mortgage offer, that’s helpful for your broker to review. They can see whether your lender will permit porting, and if there will be any restrictions. If, for example, your current Loan to Value is quite high, is your lender happy with porting that across to a new build property?
It’s lender specific, but it’s normally possible. You just need an extra chat with your advisor ahead of time to check you’re not going to trip up with any penalties or limitations.
Can I move into a new build house without changing my mortgage?
Normally if you’re going to move and take your mortgage with you, that’s porting. If you are applying for another mortgage on the new build property, they’re going to likely want a new valuation and to reassess your affordability again. They will really consider you almost as a new applicant.
If you are looking to just move a mortgage across without informing the lender or having any lender involvement, the answer is definitely no. But porting shouldn’t be too onerous, so it shouldn’t necessarily put you off.
What fees will I pay when taking out a mortgage on a new build?
Often you would have an arrangement fee from the bank, which typically ranges from £500 to £2,000. Your advisor will talk to you around that and guide you through. You might find that a high fee is associated with a lower rate, and vice versa..
Typically, you’d have legal fees. Whilst they’re not necessarily part of the mortgage, they’re unavoidable. When you’re making a purchase, you’re going to need a conveyancer who could charge £1,000 or £2,000. You might have a broker fee, although if you talk to Heron, we don’t charge these.
Beyond that, everything else is as you’d expect, and largely linked to the ongoing mortgage payments. That’s something your mortgage advisor will walk you through – we’ll talk to you about all the different types of fees.
What if I have bad credit as a home mover? Can I still get a new build property?
Yes. This is an area that’s seen huge improvement and lots of specialist lenders have come into that new build space. They’re taking a more optimistic view of adverse credit.
In the past few months, some more mainstream lenders have also started to take a more considered view on bad credit [podcast recorded in June 2025].
Clients with something historic on their file, or a one-off issue, are now more likely to be accepted with a high street lender. It doesn’t necessarily mean you’re not going to get a mortgage.
If there’s something you’re concerned about, talk to your broker very early and get it out there, upfront. It might not be as painful as you expected and there could even be a mainstream option, never mind a specialist.
What else do we need to know about a home mover new build mortgage?
The relationship that your broker has with the builder can be very important. Once they’ve taken that reservation fee from you, a house builder will have expectations towards exchange.
If your advisor is well-versed in new builds, they understand those time pressures, the expectations and the terminology, and can talk to the house builder on your behalf.
It’s probably the first time you’ve done this. A good mortgage broker with new build experience can do a lot of that heavy lifting. We effectively act as a concierge in that new build buying process, and give confidence to the house builder. That will also take a lot of headaches away from you.
Aside from the mortgage advice, the idea of your broker helping out with the builder is further added value that you may not have considered.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.