New Build Homes Mortgage Calculator

New build homes can be ideal for first time buyers, being typically more efficient and better insulated. When bought off plan, they can also be personalised with different fixtures and features. 

There are numerous schemes available as an incentive for first time buyers to buy a new build home. From shared ownership schemes, to special products offered by specific banks.  

Policies and deals vary widely between lenders, so do as much research as you can. As for when to apply for a mortgage on a new build home, you should get as much of the application prepared before you reserve your plot. As you usually have a deadline of 28 days between reserving and exchanging — by which time you will need to have a mortgage offer — anything you can do to speed up your lender’s processing time will help them. 

It’s possible to get a mortgage with only a 5% deposit. However, many mortgage providers will prefer you to have a minimum of a 15% or 25% deposit for a new build home, so it depends on each individual lender’s policy. 

Typically, the more deposit you can put down the better, as you’ll have to borrow less. The total amount that you can borrow factors in your income and expenses, so a bigger deposit doesn’t necessarily mean that you’ll be able to borrow more. However, it may enable you to afford a larger home. 

Typically, lenders will allow you to borrow up to four or five times your salary (or joint salary, if you are buying with a partner). However, each lender has their own rules and the amount they are willing to lend you will depend on certain affordability checks. They will assess factors such as:

• Your (joint) salary and source of income
• The size of your deposit
• Whether you’re using a government home ownership scheme
• Your monthly bills
• Any outstanding debts
• Your credit history
• Your age
• The length of your mortgage
• Any leasehold costs included

 You should make sure you take advice from an independent financial adviser on your own circumstances.

The total amount that you can borrow might vary from the amount that you can afford based on a number of factors. Our mortgage calculator takes into account the value of the property and your deposit size, but you will also need to consider other factors not included in the calculation such as:

• Monthly outgoings
• Lifestyle factors
• Unforeseen circumstances such as losing your job
• Changes in interest rates

Some people choose to borrow as much as they can, others prefer to borrow less due to personal circumstances or to avoid risk. You should make sure you take advice from an independent financial adviser on your own circumstances.

When buying a new build property, your deposit should be paid just before contracts are exchanged. If the house is already built, that will be a few weeks before completion. If you’re buying off plan, it’ll be a few months while your house is built. 

When you’re buying off plan, contracts will be exchanged before we’ve finished building your house. This is when you’ll then be able to specify options, such as the kitchen and bathroom and fittings so that your new home is unique to you.

Lenders will check your credit history to determine whether you have been reliable in the past with paying back debts or loans. This helps to show that you can borrow responsibly and continue with payments should your life situation change, or if interest rates went up.

Unfortunately, having little or no credit history can make it difficult for companies to assess you. The more points you have on your credit score, the higher the chance you have to be accepted for a mortgage.

You may still be able to obtain a mortgage despite having a bad credit score depending on your circumstances, however, you are likely to be offered a mortgage with higher rates and payments. If you have enough income and a good down-payment, it may be possible to find a competitive deal. We recommend trying to improve your credit score first before applying for a mortgage. Here are a few tips on how to improve your credit score:

• Get your credit reports (Eg you can check which credit issues are flagged on your Experian, Equifax and Callcredit reports). Make sure your history is up to date and challenge any mistakes.
• Make regular payments to your accounts on time and in full. This helps to show lenders you can be a reliable borrower.
• Build your credit history. Having little or no credit history can make it difficult for you to be assessed.
• Prove where you live by registering on the electoral roll at your current address.
• Consider getting a credit builder card. This gives you the chance to show that you can repay your debts in full, and on time, which will have a positive impact on your credit score.

In any case, you should take independent financial advice on the best solution for you and your family.