New-Build Mortgages and the Help to Buy Archive

This article was first written while several government homebuying schemes were open to new applicants. Those arrangements have changed, and the Help to Buy equity loan has closed. What remains genuinely useful is the guidance on buying and mortgaging a new-build home, set out below, alongside a short historical record of how the schemes worked and what existing Help to Buy borrowers need to know.

• What Help to Buy was (historical)
• If you have an existing Help to Buy equity loan
• New-build mortgages: what lenders look at
• What to consider when buying a new-build home

What Help to Buy was (historical)

Help to Buy was the umbrella name for several English schemes introduced from 2013 onwards. The Equity Loan allowed buyers of qualifying new-build homes to purchase with a 5% deposit, with the government lending a further share of the price — interest-free for the first five years and repayable as a percentage of the property's value rather than as a fixed cash sum. The Help to Buy ISA, which closed to new savers in 2019, added a government bonus to deposit savings. A mortgage guarantee scheme supporting 95% lending also ran for a period from 2021; that version closed to new loan applications in June 2025 and was replaced from July 2025 by a permanent Mortgage Guarantee Scheme, a separate current scheme under which participating lenders can offer eligible 91–95% loan-to-value mortgages across the UK. Separately, First Homes is a current scheme in England under which eligible first-time buyers may be able to buy a qualifying home at a discount, subject to current scheme and local criteria.

These arrangements are recorded here for context only. Their application routes, price caps, deadlines and the Help to Buy agents that once administered them no longer operate as described, and Scotland, Wales and Northern Ireland ran their own separate schemes with different rules. Our archive guide covers the detail: how Help to Buy worked.

Options that may be open to buyers today — including Shared Ownership, the Lifetime ISA, First Homes, the permanent Mortgage Guarantee Scheme and 95% mortgages available in the general market — are covered in our guide to government schemes for homebuyers, which is kept up to date. Availability of any particular scheme, property or product is never guaranteed and depends on current criteria.

If you have an existing Help to Buy equity loan

Closure to new applicants does not affect loans already in place; existing equity loans continue on their original terms. Three points matter most for current borrowers: interest charges beginning after the first five years, repaying part or all of the loan (calculated as the government's percentage share of your home's market value at the time you repay, normally requiring a RICS valuation and the administrator's involvement), and remortgaging with the loan still attached. Fewer lenders work with properties carrying an equity loan, so product choice is narrower and timings need coordinating with the administrator. Our archive guide explains this in full under existing Help to Buy borrowers.

New-build mortgages: what lenders look at

New-build purchases are assessed slightly differently from existing homes, whatever scheme is or is not involved. Minimum deposits can be higher for new-build flats than for houses with some lenders, and maximum loan-to-values vary by property type. Lenders also take a view on the developer, the warranty provider and any incentives included in the sale — paid deposits, cashback, fitted extras or paid service charges are usually declared on the disclosure of incentives form and can reduce the figure the lender will lend against.

Some lenders price new-build lending differently, reflecting the possibility that a property's resale value in its early years may differ from the price paid. Because criteria vary considerably between lenders, early advice helps you target the ones whose rules fit your purchase rather than discovering a mismatch after you reserve a plot.

What to consider when buying a new-build home

People choose new-build homes to move straight in without renovation work, to avoid a property chain, and for the warranty and energy efficiency that come with a new property. There are some specific points to plan for.

If you are buying off-plan — before the property is finished — your mortgage offer will have a fixed validity period. Around six months is common, though some lenders offer longer periods specifically for new-build purchases. If construction takes longer than the offer allows, you may need to reapply, and a change in your circumstances or in lending criteria in the meantime can affect what is then available to you. You remain contractually committed to the agreed purchase price even if the property's market value changes during construction.

If the valuation at completion comes in below the price agreed, your lender may reduce the amount it is willing to lend, leaving a shortfall you would need to cover, while you would still be legally bound by the contract with the developer. It is worth discussing that scenario with your solicitor before you exchange, and checking the warranty cover, any service or estate management charges, and the lease terms if the property is leasehold.

An adviser can compare the lenders whose new-build criteria match your purchase and help plan the timing around your build completion date. Use our mortgage calculator for an indication of borrowing, or contact our team. Your initial consultation is free; if you proceed with an application, a broker fee may apply and is explained and agreed in writing beforehand.

This information is a guide only and should not be relied on as a recommendation or advice that any particular mortgage is suitable for you. All mortgages are subject to the applicant(s) meeting the eligibility criteria of the specific lender.