New Build

Our New Build loan to values (LTVs) differ to our standard LTVs.

Where your New Build application applies to a scheme, please refer to our Housing schemes page for specific LTVs. 

Please ensure you check the product finder for the current rates.

Standard purchase cases (including Shared Ownership)

• Builder deposits, cashback and any other financial incentives (including vouchers) listed in Section 7 of the UK Finance Disclosure Form are acceptable, up to a maximum total value of 5% of the purchase price or valuation. If the total value is more than 5% we'll decline the case. The value of incentives will need to be reduced to 5% or lower.

Equity loan cases (Including Help to Buy) and First Homes

• We won't accept Builder deposits and cashback on New Build equity loan and First Homes cases.
• Any other financial incentives (including vouchers) listed in Section 7 of the UK Finance Disclosure Form are acceptable, up to a maximum total value of 5% of the purchase price or valuation. If the total value is more than 5% of the purchase price or valuation* we'll decline the case. The value of incentives will need to be reduced to 5% or lower.
• Your client must provide a minimum 5% deposit from their own resources. This can include gifted deposits.

Deposit Unlock

• Builder deposits, cashback and any other financial incentives (including vouchers) listed in Section 7 of the UK Finance Disclosure Form are acceptable, up to a maximum total value of 5% of the purchase price or valuation*. If the total value is more than 5% of the purchase price or valuation* we'll decline the case. The value of incentives will need to be reduced to 5% or lower.
• Your client must provide a minimum 5% deposit from their own resources. This can include gifted deposits.
• To protect the interests of homebuyers under Deposit Unlock, valuers will limit ‘unsustainable’ elements of the New Build premium and financial incentives to a maximum of 5%. Improved design, performance and efficiency will continue to be reflected in value as will non-financial incentives. See our New Build valuation page for more information.

Builder non-financial incentives

• We'll accept builder non-financial incentives (for example kitchen upgrades, fitted appliances, home fittings/furnishings, flooring, garden landscaping etc) on all New Build applications. This is in addition to financial incentives.

Vendor cashback

• Cashback on properties that have recently been (or are in the process of being) upgraded or converted into flats by a developer, we'll treat as Vendor Cashback. Except if they're developing several properties on several sites at the same time.
• We deduct the value of the Vendor Cashback from the purchase price or valuation*, which gives the net purchase price. We base our lending on whichever is lower, the net purchase price or net value.

*whichever is lower

• Minimum acceptable lease term (doesn’t apply to Shared Ownership):
  • 125 years for flats
  • 250 years for houses

• As per the Leasehold Reform Act 2022 the following lease terms are unacceptable:
• any lease which is subject to a ground rent (or annual rent) being charged which is more than on a peppercorn basis
• any lease which is subject to a ground rent (or annual rent) being reviewed and altered on any review basis or methodology.

This applies to any lease transferred for the first time or extended after 30 June 2022. Where a head lease or underlease was created prior to 30 June 2022, but was transferred for the first time after this date, the lease will be required to conform to the Act. The applicants’ solicitor will need to confirm that the lease meets these requirements.

• Estate Rent Charges, or Estate Management Charges, can apply to freehold or leasehold properties.
• Charges must be reasonable at all times. Where charges are greater than £500 per annum, we’ll need to be advised what the charges cover so the valuer can assess whether the valuation is affected.

New Build applications can be submitted via NFI Online.

Submit a case

If you're submitting a Help to Buy application, you'll need to key the case as an Equity Share Loan. Download our Equity Share Loan keying guide for more help.

A UK Finance Disclosure Form must be included in the application.

UK Finance Disclosure Form

Offers are valid for 180 days, however for New Build we’ll consider extending this by 45 days, subject to eligibility. 

If there are 30 days or less until their mortgage offer expires, you can use our online form to request an extension.

You should only contact us if the original offer is within 30 days of expiry. To help us process your request, please submit no later than 15 days before the offer is due to expire.

You'll also need to confirm that there have been no material changes to the application. This includes, but is not limited to; reduction in hours, loss of job, change in employment or new loans / credit cards. Where material changes to income are declared, we'll require up to date proofs and the case will be re-assessed. If proofs are required, we'll add a case requirement when an extension request is received.

For non-simultaneous porting cases, if the offer extension is agreed, we'll also agree to extend the 180 day non-simultaneous port period to the new offer expiry date.

If you know your client will be unable to complete within the extended offer period, please complete a new application as no further extensions will be available.

Please be aware that you can't apply for an extension when the offer has expired. Once an offer has been extended, you’ll be unable to make any material changes to the application.

If you have a client who is in the last month of their 180 day non-simultaneous port period without an offer in place, for example where they have not found a new property yet or their purchase has fallen through due to the impacts of Covid-19, please contact your BDM.

Your client will receive an automated text message to confirm the offer is due to expire, even though it may have been extended. This is nothing to be concerned about and the email you receive confirming the offer extension supersedes this. You may want to make your client aware to ignore this text message where an extension has been applied for and granted.

You can escalate a New Build case if:

• All documentation requested has been uploaded to the application and
• We've had the application for 14 working days or more and/or
• Imminent exchange/completion is due (i.e. within the next 5 days)

When you need to escalate a case, call 0345 607 22 45.