New build mortgages

At NatWest, properties may count as new build homes if in the past two years, they’ve been:

• constructed
• first occupied in their current state
• significantly modernised
• refurbished
• or altered.

You might need a higher deposit when applying for a new build mortgage compared to an existing residential property, and new build flats may have higher deposit requirements than houses.

Yes, you can typically reserve a new build home without already having a mortgage secured. However, you will usually need to provide proof that you can proceed with the purchase.

Can I buy an off-plan property with a NatWest new build mortgage?

Yes, but you should get an Agreement in Principle with NatWest before committing to purchase the new build home and start your full mortgage application when your developer nears completion.

Buying a new build home offers many potential benefits, including:

• Being a blank canvas that you can make your own.
• Compliance with the latest building and energy-efficiency rules.

However, new build properties can often have small issues known as ‘snagging’. So, it’s useful to compare brand-new and older homes to see which you prefer.

LTV compares your mortgage borrowing to the value of the property and helps you understand how much deposit you may need towards the purchase of your new home.

It’s generally shown as a percentage.

As an example, let’s take new build mortgages with a 90% LTV:

• The mortgage would cover 90% of the property’s value.
• So, you’d need to find a 10% deposit to secure this mortgage on the new build property.

A larger deposit will mean a lower LTV – and a smaller percentage to borrow. This could lead to lower monthly repayments.

Find out more about LTV

At NatWest, we’ll accept builder financial incentives that are up to 15% of the property’s purchase price. However, if the incentives exceed 5% of the purchase price, they’ll be deducted from the price. Lending will then be based on the reduced price or the property valuation, whichever is lower.

Yes, if you’re buying a home built in the last two years or with an EPC rating of A or B, you could access Green Mortgage options with lower interest rates on selected products at a minimum 85% LTV.

Learn more about our Green Mortgages

New home mortgage offers with NatWest are typically valid for six months, though you may be able to request a three-month extension if one is needed.