How much of the price
A new-build house is often considered up to about 95% of the lower of the purchase price and the valuation. On a larger loan that share often drops. A bungalow on a development is usually treated as a house. The reservation price is not the figure that matters if the valuation comes in lower. We check the loan against that lower figure before you exchange.
What the builder adds
Cash, a gifted deposit, or stamp duty and legal fees paid by the developer, is often capped at about 5% of the price. Anything above that is often taken off before the loan is worked out. You should still expect to put in about 5% of your own money. A gift from family can count towards that. A personal loan usually does not. A kitchen upgrade, flooring, appliances or turf is usually treated more gently than cash. A part exchange of your current home can be counted inside the same cap. We set the incentive out properly, so it is not a surprise at the valuation.
The warranty
The house normally needs a structural warranty of about 10 years from a provider a lender will accept. A warranty arranged after the build, or a consultant’s certificate on a large site, is often refused. If the cover is the wrong sort, the case stops late. We ask who the warranty is with before the application goes in.
If the house is not finished
An offer on a normal purchase often lasts about six months. A plot may not be ready by then. That is a separate problem from the type of property, and it is one we look at before you reserve.
These are typical lending positions, not a mortgage offer and not a promise of what a lender will do. Rules change, and the result depends on the plot, the price and your circumstances. We check the detail and tell you what can actually be done.
Talk to us before you reserve