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New build mortgage deals

If your sights are set on a new-build property, the right mortgage for you will depend on your circumstances. At Alexander Hall, we're here to help you find the best new-build mortgage rates that match your criteria. With access to over 100 lenders and a team of award-winning brokers, we have everything you need to get a great deal on your new home.

Use our handy calculator tool on this page to get an idea of the deals that may suit you, then get in touch with our team of skilled advisors for guidance tailored to you.

  • Award-winning team of brokers
  • 100+ lenders in our network
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Ready to start the process? Call our advisors for free on 08000 38 37 36


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Compare the best new-build mortgage rates & the latest deals

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How do I compare new-build mortgage deals?

To compare the different mortgage rates on new builds, using our tool will help you get an overview of the deals that might be suitable. Here's how to use it:

  1. Enter your preferred property price and mortgage term, and the amount you want to borrow.
  2. Filter your search by your preferred mortgage type, rate options and other features you're looking for.
  3. Compare the different offers based on details like interest rates, lender fees, flexibility and overall costs over the mortgage term.
  4. Once you've selected the deals that could be a good fit, speak to one of our specialist advisors for expert advice. We'll help you make an informed decision.

Fixed or variable new-build mortgage rates?

While new-build properties can mean to save on spending money on costly repairs and upgrading to energy-efficient solutions, you'll also need to factor in which type of mortgage rate could suit your budget.

There are two main types of mortgage rates: fixed and variable.

  • Fixed-rate mortgage: With a fixed-rate mortgage, your interest rate stays the same for a set period, which is typically two to five years. This means your monthly repayments remain the same for the duration of the mortgage, offering stability.
  • Variable-rate mortgage: A variable rate can change over time. This might offer savings if rates go down, so you could end up paying less each month than if you choose a fixed-rate mortgage. However, you could also pay more if they go up.

    There are different types of variable-rate mortgages, such as discounted variable-rate mortgages which track the lender's standard variable rate at a discounted rate. There are also tracker variable-rate mortgages that follow the Bank of England base rate.

If you're unsure about whether you want a fixed or variable new-build mortgage, we can explain these in more detail so that you can choose the best deal.

Key new-build mortgage deal terms explained

We know that there can be a lot of jargon around new builds and interest rates for new-build properties. To make it easier for you to compare deals, we've broken down the essential terms below.

  • Loan-to-value (LTV) ratio: This is the size of the mortgage you choose compared with the property's value you're borrowing, expressed as a percentage. The bigger your deposit, the lower your LTV is likely to be. For example, a £100,000 mortgage on a £200,000 property would have an LTV ratio of 50%. Knowing your LTV can help you understand which deals might be available to you.
  • Initial rate: This is the amount of interest rate charged during the initial period of your new-build mortgage, which usually lasts two to five years.
  • Reverting to: After the initial period ends, the rate reverts to the lender's standard variable rate (SVR). This is an interest rate the lender sets and it is normally higher than the initial rate.
  • Annual Percentage Rate of Charge (APRC): This represents the overall cost of the mortgage, making it easier to compare deals.
  • Lender fees and exit fees: Lender fees are the charges associated with setting up the mortgage, including a booking fee, arrangement fee and valuation fee. An exit fee covers the costs of closing your account after you've paid off your mortgage.
  • Off-plan: This means you're agreeing to buy before the developer has finished building the property.

How can our experts help you secure the best new-build mortgage rates?

Whether you're a first-time buyer or a home mover, comparing the different new-build mortgage deals that are available can be challenging. Even if you find some excellent rates using the tool on this page, you may find many match your criteria and you need help with making a final decision.

For a tailored solution, consider letting Alexander Hall's expert mortgage advisors do the job for you. We have over 30 years of experience providing valuable advice and know how to navigate new-build mortgage deals.

In addition to our market knowledge, our network of more than 100 lenders gives you access to a wide array of products, including some that aren't directly available to consumers. We understand the challenges you face and can guide you through every step of the process.

Why is Alexander Hall best placed to find mortgage rates for new builds?

When it comes to buying a new build, you need a trusted partner that is skilled in providing mortgage advice. Here's why you can rely on Alexander Hall:

  • Impartial advice: We're here to help you rather than any particular lender, so you'll only ever receive personalised guidance.
  • Stress-free service: We take care of the paperwork so you can focus on buying your new-build home.
  • Extensive search: We search our network of over 100 lenders to find you the best new-build mortgage rates.
  • Top-rated service: Thousands of clients have rated us 'Excellent' on Trustpilot and we're committed to providing you with the same high levels of service.
  • Award-winning team: We were awarded Best Broker for Customer Service in the Legal & General 2024 Mortgage Club Awards and we have plenty more accolades under our belt.
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FAQs about mortgage rates and deals for new-build properties

Typically, new builds do not have lower interest rates. Lenders tend to be stricter about borrowing as they see these mortgages as riskier than for older homes.

The price of your new property may decrease in value in the initial years after it's built to account for it not being 'new' anymore. This means the lender has less security for the loan.

While this fall in value isn't always the case, lenders have to plan for this possibility. Therefore, the rate is likely to be higher. You may also need a larger deposit than you would need for other properties.

As lenders consider new builds to be a higher risk, you'll need a 15% deposit for a new-build house. If you're buying a new-build flat, you'll be required to pay a 25% deposit.

This contrasts with the standard 5-10% deposit that's usually required on other types of properties.

There are several ways to get a new-build mortgage deal with a smaller deposit. You will need to check if the house builders and lenders participate in some of these:

  • Deposit Unlock scheme: This is a scheme by the Home Builders Federation to help first-time buyers and home-movers buy a new-build property with a 5% deposit. You can only buy a home from a house builder participating in Deposit Unlock and using one of the new-build mortgages offered by a participating lender.
  • ownership: Agreeing to a shared ownership deal means buying a share of a property and paying rent on the remaining share. This means you need a smaller mortgage and therefore a smaller deposit.
  • New Rate Reducer: With this scheme, you can buy a new-build home with a mortgage and pay a lower interest rate. The developer contributes 3% or 5% of the purchase price as an incentive for you to buy with them.

    The developer's contribution goes to your mortgage lender and offsets it against the mortgage interest to reduce your monthly payments for the first two or five years.

    Own New also offers the Deposit Drop scheme, which lets you buy a new-build home with a 5% deposit.

If you're buying your new build off-plan, you may find your mortgage is affected by fluctuations in the property's value.

Should the value increase, this is a positive change for you and your mortgage as you get more equity in the property, reducing the amount that your mortgage covers. If there's a fall in its value before it's completed, your lender might withdraw the offer or reduce the amount they're willing to give you. In this case, you have a financial shortfall.

With this in mind, think carefully before you decide to buy off-plan. Get advice and make sure you fully understand your financial position.

Expert new-build mortgage deal advice tailored to you

Let Alexander Hall guide you in finding new-build mortgage rates that suit you and your financial goals. Our team of advisors are on hand to talk you through the full mortgage process, providing clear guidance and support. Reach out today to take the first step towards securing your new-build home.

Call our expert advisers now.

08000 38 37 36