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.

Deposit Unlock is a new scheme which allows first time buyers and home movers to borrow 90.01-95% Loan to Value (LTV) up to a maximum loan of £750,000, on New Build properties. 

The scheme supports both first time buyers and home movers with a low deposit to buy a New Build property. It's exclusively for New Build homes with developers participating across England, Wales and Scotland. For more details, download our Deposit Unlock infographic and if you'd like to see a list of participating builders, please check the Home Builders Federation website.

Please note, the builder must approve the use of Deposit Unlock before proceeding with the application.

How affordability is calculated

Nationwide’s standard affordability criteria applies if you're considering applying for deposit unlock.

Before applying don’t forget:

• Deposit Unlock is not available to self employed applicants
• This must be your client’s only mortgaged property on completion (including Buy to Lets).
• Deposit Unlock can’t be used in conjunction with any scheme or non-standard ownership type (for example Shared Ownership, Genuine Bargain Price, Right to Buy and Help to Buy).
• Forces Help to Buy can be used in conjunction with Deposit Unlock.
• Our standard LTV limits apply on New Build properties where your client does not qualify for Deposit Unlock.
• Applications must be submitted using NFI Online.
• You'll need to provide a ‘Loan Confirmation Letter’. This must be attached to the case to show that the builder is offering the Deposit Unlock guarantee for the property being purchased.

The value of all incentives must be declared on the UK Finance Disclosure Form and the current version of the form must be used.

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 on standard New Build purchases.
• The maximum total value allowed is 15% of the purchase price or valuation*. If the total value is more than 15% of the purchase price or valuation*, the case will be declined.
• When the total value is less than or equal to 5% of the purchase price or valuation*, we base our lending on the lower of the full purchase price or value.
• Where the total value is more than 5% (but less than 15%) of the purchase price or valuation*, we deduct the amount above 5% from the purchase price or valuation*, which gives the net purchase price. Our lending is based on the lower of the net purchase price or net value.

Equity loan cases

• Builder deposits and cashback are unacceptable on New Build equity loan cases.
• Other financial incentives 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*.
• We base our lending on the full purchase price or valuation*.
• 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*.
• Financial incentives are accepted in addition to your client providing 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

• Builder non-financial incentives (for example kitchen upgrades, fitted appliances, home fittings/furnishings, flooring, garden landscaping etc) are accepted on all New Build applications 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, are treated 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. Our lending is based on the lower of the net purchase price or net value.

*whichever is lower

When a new property is built, the developer will provide a guarantee to ensure the building has been constructed to a standard set by the warranty provider. This is to ensure that any issues related to the property post-completion are covered by an insurance policy. It's unlikely that any mortgage provider will lend on a property without a warranty.

At Nationwide, the Building warranties we'll accept include:

• NHBC
• LABC
• Build-zone
• Premier Guarantee
• One Guarantee
• ABC+
• Build Assure (New Home Structural Defects Insurance)
• Checkmate's Castle 10 (where out buildings such as a detached garage are also being constructed, an endorsement to include these in cover is required).
• Global Home Warranties (Structural Defects Insurance)
• The Q Policy for Residential Properties
• The Q Policy for Bespoke Properties - detached only
• International Construction Warranties (ICW)
• Ark Residential New Build Latent Defects Insurance - where a detached garage/outbuilding has been constructed at the same time as the main building, the policy must include an endorsement confirming cover for the detached garage/outbuilding.
• Advantage - there must be no more than ten units in any continuous structure
• Aedis - there must be no more than 20 units in the structure.
• BLP - formerly known as Building Life Plan (excluding self builds under construction). These policies are underwritten by Allianz Global but written by BLP.
• Protek
• Professional Consultant's Certificate issued by an Architect/Surveyor. The Certificate is checked by the solicitor and must comply with the requirements of the UK Finance Lenders Handbook
• CRL New Build 10 year structural defects insurance policy for residential property*.

*Nationwide will only accept a CRL New Build 10 year structural defects insurance policy in the following circumstances:

• The final certificate is dated 04/09/2019 or earlier, and the underwriter is International General Insurance Company (UK) Ltd (IGI) or CGICE
• The final certificate is dated 05/09/2019 or later, and the underwriter is International General Insurance Company (UK) Ltd (IGI) and the final certificate has been signed by Ark Insurance Group Ltd. Arks final certificates are titled: ‘10 year Structural Defect Insurance Policy’. All final certificates signed off by Ark are proof that the warranty is acceptable.

We won't accept the warranties in the following circumstances:

• On New Build properties underwritten by Alpha.
• On second-hand properties being sold by first or subsequent owner and properties under two years old, with the warranty underwritten by Alpha.
• Retrospective certificates by a professional who hasn't supervised the project from the start and inspected the build at regular intervals.

If another building warranty has been issued that's not listed above or you have any questions, please contact the New Build support team.

• Minimum acceptable lease term (doesn’t apply to Shared Ownership):
  • 125 years for flats
  • 250 years for houses
• Maximum starting ground rent on all New Build properties with a leasehold tenure is limited to 0.1% of the property value.
• Ground rent must always be reasonable during the lease term. For example, ground rent escalation should be linked to Retail Price Index or similar, and unreasonable multipliers of ground rent will not be permitted, e.g. doubling every 5, 10 or 15 years.
• Ground rents with a review frequency of 5 years or less are unacceptable.

• 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 and MTE.

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 request an extension on our online form.

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; being furloughed, 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.