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Mortgage360 are here to help you make the right choice.

Here at Mortgage360 we pride ourselves on offering tailored advice, coupled with great service. We are mortgage experts, so you can rest assured that you are in safe hands when searching for your new mortgage, whatever your situation may be.

Key Benefits

We are committed to guiding you through one of life's most significant financial decisions.

When it comes to securing the right mortgage, our expert team is here to ensure that you make informed choices tailored to your unique needs.

Our expert team is here to ensure that you make informed choices tailored to your unique needs.
We can help with securing mortgage offer extensions if building delays occur.
From agreement in principle through to purchase, we’ll be there to help at every stage of the journey.

In general, securing a mortgage for a new build property follows many of the same processes as purchasing any type of property. However, there are some specific differences and challenges you should be aware of when you embark on your journey. Mortgage lenders do treat applications for new build properties differently and apply different criteria.

The definition of a new build property may differ with individual lenders. Generally speaking, the term covers any property built within the past two years, and not yet sold. If you buy a property which is still being built, or where work has not yet begun on site, this is known as ‘buying off plan’.

With off plan, you agree to buy your home before it’s finished, or even before work has begun. You put down a deposit – often a small sum – and then usually have the benefit of being able to specify fixtures and fittings, and even in some cases, furnishings.

Buying off plan is not usually a problem for mortgage lenders. It’s a common scenario in the housing market. However, new build mortgage lenders will not be prepared to release mortgage funds until all building work is complete.

If delays occur during the building phase – which they often do with new build properties – then it is possible that your mortgage offer term may expire before the property is completed, which will necessitate the need for an offer extension being granted by the lender.    

Benefits of a new build property to the buyer

There are many advantages to buying a new build home – here are just a few.

  • It really is brand new. Everything is exactly as you expect it to be, with no hidden horrors in terms of potential costly renovations and maintenance costs.
  • You have real choices in terms of position and aspect.
  • Your new property will almost certainly have been designed and built with modern living in mind, including open plan living areas, easy access to outdoor space and parking.
  • You won’t get caught up in a property chain (unless you’re selling at the same time, in which case the fact that you aren’t in a buying chain can be attractive to your buyers).
  • You will probably be able to specify your own choice of fixtures and fittings.
  • You have real peace of mind in the shape of a 10 year NHBC (or similar) building warranty to cover any structural defects arising.
  • You are buying as a business transaction – many house sales fall through because of sellers changing their minds or circumstances, which is unlikely to happen with a professional housebuilder, who must comply with the House Builders’ Code of Conduct.
  • New build properties are designed to be more energy efficient, with the benefits of lower energy costs and reduced environmental impacts.

Potential drawbacks of a new build property

There can be some disadvantages too.

  • New build homes can be more expensive than older properties.
  • Delays in the build process can sometimes impact your moving plans, particularly development delays for off plan properties.
  • Lenders usually demand higher deposits and are stricter on the amounts they are willing to lend, so it may be more difficult to secure a mortgage.
  • If you’re buying off plan, you will have to pay a reservation fee on the property, which you will likely lose if you change your mind.
  • New homes can be more difficult to sell on if you need to move up or down the property ladder.
  • Some mortgage companies may be conservative about the value of a new build property because of a lack of history on buying and selling, unlike with older properties.

The new build mortgage process

If you choose to buy a new build home, then it’s important to pay attention to the timing of your new build mortgage application. Most mortgage offers are valid for six months, so if there are any delays in your development, it’s possible your mortgage offer could expire. Equally, if you leave it too late, there could be other issues.

It is possible to secure an extended validity period if you become aware of delays, which is where Mortgage360 can help, avoiding having to reapply for a new mortgage, potentially at a higher interest rate.

Additionally, some developers will give you a timeframe in which to exchange contracts and complete your purchase – this will differ from developer to developer. Arranging your mortgage in plenty of time means this will not be a problem.

As a guideline, the process for buying a new build should work as follows.

  • Check your affordability – Mortgage360 can help with this
  • Then you can begin your home search, knowing what your affordability ceiling is
  • Pay your reservation fee to the developer
  • Apply for a new build mortgage – work with your mortgage broker to select the appropriate mortgage type. You may be able to benefit from government schemes here, and Mortgage360 can advise accordingly
  • Your mortgage broker will also check that your developer’s new build warranty is recognised by your lender during the application process
  • Secure your mortgage offer
  • Begin the legal process by appointing a conveyancer

What are the eligibility criteria?

– Your deposit

It is not unusual for the value of new builds to fall a little when they are occupied, so mortgage lenders usually require larger deposits on new build homes. Expect your deposit to be at least 15% of the value of the property value (85% Loan to Value), with some lenders looking for as much as 20%.

– Other typical eligibility implications

Most lenders base their decisions on how much they’re willing to lend on a multiple of 4 to 4.5 times of the applicant’s annual income, subject to overall affordability.

Your personal circumstances are important. Earnings and expenditure are scrutinised closely; stronger applications can demonstrate they live within their means. Your DTI (Debt to Income) ratio will also be assessed.

Your credit history – positive credit history is an important factor, although it’s not impossible to get a new build mortgage even with bad credit.

A mortgage lender will definitely be stricter with new build mortgage applications, which are carefully scrutinised by underwriters. If you’re looking for support with a new build mortgage, Mortgage360 can help.

When should you apply for a new build property mortgage?

It’s never too soon to look at an agreement in principle through your mortgage broker, but it’s best to make your application as soon as you find your new build home and pay your reservation fee. Developers may well apply deadlines on how quickly they need you to complete, so make sure you have your plans in place.

Contact Mortgage360 as soon as you’ve paid your reservation fee. You may have to advise when applying about any new build developer incentives being offered such as payment of stamp duty or legal fees, or even cashback, and these can impact on which lenders are willing to assist you.

New Build Mortgage Broker

Here at Mortgage360, we can provide expert advice on all your mortgage and insurance needs.

Whether you’re ready to get started on your journey now, or you’d just like a no obligation consultation, we’d love to hear from you…

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There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, however we estimate this to be between £200 and £600.


See what our clients are saying....

Zoe Cameron
September 28, 2023

Great service from Mortgage360, following a recommendation from my financial advisor. They efficiently went through our criteria and found the best mortgage to suit our needs. Their comms are great, they kept me fully informed throughout. Thank you Gavin and Matt.

Barnaby Fox
September 14, 2023

Gavin/the team was extremely efficient and communicative through the whole process, resulting in getting a mortgage at a great rate.

Richard Fryer
June 30, 2023

After working with Matt from Mortgage 360 previously on our first mortgage he shows excellent customer service and caters for the needs of the client. Couldn’t be happier working with Mortgage 360 especially in the current climate as the business answers all the questions asked and takes the customers best interests into account.

Samia Umarq
May 15, 2023

Gav arranged my mortgage he was great throughout the process keeping informed, very friendly and knowledgeable highly recommend him.

R Virk
R Virk
May 10, 2023

Excellent service from Gavin Watson

I contacted Gavin Watson, as I was needing to remortgage my property quickly, as my previous fixed arrangement was due to end within weeks. Therefore, there was a sense of urgency on my part. I need not have worried as Gavin was very supportive and professional from the first contact to the completion of the new mortgage arrangement. He took the time to listen and explain all the options I had and guidance on the best option for my particular circumstance. Gavin ensured the remortgage was completed effectively and efficiently, not to mention, well within the timescale. If you are looking for a professional, who has the best interests at heart for his clients, then look no further. I highly recommend Gavin Watson, if you are in the market for a mortgage. Thank you so much Gavin for such an excellent service.

Angela Holder
Angela Holder
May 6, 2023

Great service from Matt for the second…

Great service from Matt for the second time. He was fast to give advice and extremely efficient in obtaining the best possible mortgage. The whole process was smooth and stress free.

Aiden palmer
Aiden palmer
May 4, 2023

Brilliant service!

Brilliant service!! Gavin has helped us so much to get our mortgage and we couldn’t have done it without him. We will definitely use him again in the future. Thankyou so much!

GALE Boyes
April 21, 2023

Absolutely amazing service from Matt can't thank him enough for securing our mortgage for our forever home considering our past credit history. Thankyou again Matt at pulsar. 100% recommend.

Jamie Chan
Jamie Chan
April 4, 2023

Matt continues to provide exceptional…

Matt continues to provide exceptional client services, and is very diligent in searching the market for the best deal. Highly recommended. Thanks, Jamie

Sue Alexander
Sue Alexander
March 16, 2023

I recommend Pulsar to everyone

I would recommend Pulsar to everyone. Gavin has been amazing helping me to buy my council house. As this is my first home purchase and I’m not young!! He made everything easy to understand and made the mortgage mind field easier to navigate, getting me the best deal. I know that ongoing support is there if and when I need it. Thank you Gavin x

David Ian
David Ian
March 3, 2023

Great service, friendly, prompt and professional personal recommendation led us to…

A personal recommendation led us to Pulsar F. S. Matthew Illingsworth was very helpful, prompt and supportive through the process of obtaining a bridging loan to purchase. The documentation explained our options and laid out the process clearly. Would full recommend to others.

Amanda Underhill
Amanda Underhill
February 27, 2023

Remortgage recommendation

Gavin has been absolutely amazing dealing with my remortgage. Professional but personable from the start, he has been able to secure the right mortgage for me and supported me through the process giving impartial advice and a range of options for me to consider. He’s provided timely support, and has been contactable to answer questions as needed - this has been exactly what I needed during a stressful time remortgaging during divorce negotiations. I’d highly recommend Pulsar Financial Services!

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