New Build Mortgage Advice London
Independent mortgage advice for new build homes and flats — navigating developer timelines, lender criteria, and offer validity with whole-of-market access.
Get Free New Build AdviceWhy New Build Mortgages Need Specialist Advice
Purchasing a new build property involves a set of mortgage considerations that simply don't apply to second-hand purchases. Developer timelines, lender restrictions on certain property types, mortgage offer validity, and the interaction of builder incentives with lender valuations all need careful management. Getting the wrong lender — or approaching without the right preparation — can result in delays, a collapsed purchase, or a mortgage offer that expires before your home is built.
As an independent whole-of-market adviser, Roger Cooper identifies lenders who are experienced and comfortable with new build purchases from the outset — not lenders who will create problems at the point of application. This preparation makes a measurable difference to how smoothly your purchase proceeds.
Key New Build Mortgage Considerations
Mortgage offer validity and developer timelines
A standard mortgage offer is valid for 6 months. New build completion dates frequently slip — sometimes by months. If your offer expires before your home is ready, you must reapply, potentially at a different rate in a changed market. We identify lenders who offer 9-12 month validity periods specifically for new builds, and who have clear extension policies if needed.
Lender restrictions on new build flats
Many high-street lenders apply restrictions to new build flats — particularly buildings above a certain height (often 5-6 storeys), high investor-ownership blocks, or developments requiring EWS1 fire safety certificates following changes to building safety regulations. We check lender criteria against the specific development before any application is made.
Developer incentives and valuations
Developer cashback offers, included fixtures, and other incentives are generally accepted by lenders but may affect the lender's valuation of the property. If a lender values the property below the purchase price, your effective deposit increases. We advise on which incentives are accepted and structure your application to avoid valuation issues.
Exchange timeline pressure
Developers typically require exchange of contracts within 28 days of reservation — sometimes faster for off-plan properties. This compresses the mortgage application timeline significantly. Being mortgage-ready — with an Agreement in Principle from a suitable lender — before reservation is essential.
Shared Ownership and First Homes new builds
Many new build purchases in London involve government-backed schemes — Shared Ownership or First Homes. These have additional criteria on top of standard new build requirements. Lenders who participate in these schemes must also be new-build-friendly. We identify the intersection of scheme eligibility and new build lending criteria.
The New Build Mortgage Process
Before reservation — get an AIP
Before you visit a development or make a reservation, we arrange an Agreement in Principle from a lender who is comfortable with the specific development type. This confirms your maximum budget and puts you in a credible position when reserving.
Reservation and exchange
Once you reserve, the clock starts on the exchange deadline. We submit your full mortgage application immediately to ensure it progresses quickly. We liaise with the developer and your solicitor to hit the exchange deadline without delays caused by the mortgage.
Application through to offer
We manage the application through underwriting, valuation, and to formal mortgage offer. We advise on the right survey approach for a new build — in most cases a snagging survey in addition to the lender's valuation.
Managing the build timeline
We monitor your mortgage offer validity against the developer's anticipated completion date. If the timeline slips, we liaise with the lender about extension options before your offer expires. You don't have to manage this yourself.
Completion
On completion, your mortgage funds are released to your solicitor and the keys are yours. We remain available for any queries and advise on protection — life cover, buildings insurance (which must be in place from exchange on a new build) — as part of the process.
New Build Mortgage FAQs
What makes new build mortgages different?
New builds involve developer timelines, mortgage offer validity concerns, and lender restrictions on certain property types — particularly high-rise flats. Lenders who are comfortable with new builds have specific experience managing these factors. Independent advice helps identify the right lender from the start rather than finding problems after you've reserved.
How long does a new build mortgage offer last?
Standard mortgage offers are valid for 6 months. New builds often take longer to complete. We identify lenders who offer 9-12 month validity for new builds, and who will extend offers if a development is delayed. This protects you from having to reapply — potentially at a worse rate — if the developer runs late.
What deposit do I need for a new build?
For new build houses, most lenders accept 5-10% deposit. For new build flats, many require 10-15%, and some require 25% for high-rise buildings. Developer incentives may affect valuations, which in turn affects your effective LTV. We model this before you reserve so you know exactly what deposit you need.
Do I need to exchange contracts quickly after reserving a new build?
Developers typically require exchange within 28 days of reservation, sometimes faster. This is why having an AIP from an appropriate lender before you reserve is essential. We can arrange an AIP quickly and ensure your application is ready to submit immediately after reservation to hit the exchange deadline.
What survey do I need for a new build?
The lender's valuation is automatically arranged as part of your mortgage application. For a new build, we also recommend arranging an independent snagging survey as the property nears completion — this identifies any defects the developer should rectify before you complete. The NHBC warranty (if applicable) covers structural defects, but a snagging survey covers the detail.
Can I use Shared Ownership for a new build?
Yes. Most Shared Ownership purchases are on new build developments. The mortgage is on your share only, and eligibility depends on the scheme, housing association criteria, and the specific development. We advise on which lenders participate in Shared Ownership and are also comfortable with new build properties.
Important:
Your home may be repossessed if you do not keep up repayments on your mortgage.
Buying a new build in London?
Get independent mortgage advice before you reserve — Roger Cooper CeMAP, 90+ lenders, FCA regulated.
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