New build mortgages
Our new build proposition is designed with both you and your clients in mind.
You can choose from any of our residential or Buy to Let products. We have straight-forward criteria and a specialist new build team on hand should you need their support.
For clients that need extra support, you can also download our new build guide.
Criteria highlights
We define a ‘new build’ as a property that was built within two years of the date of the mortgage application or is to be occupied for the first time.
Our Loan to Value criteria for new build properties are:
Residential
Houses 90% max LTV
Flats 75% max LTV
BTL
Houses 75% max LTV
Flats 50% max LTV
We'll accept financial incentives from builders up to 10% of the purchase price. The first 5% isn't dedicated from the purchase price.
NOTE: If any element of the incentive is cashback, the full amount must be paid at completion. Instalments are not acceptable
We understand things might take a little longer with new build purchases. Our mortgage offers are valid for nine months – with an extra three month extension available.
We've made it easy for you or your admin team to apply for an extension up to 30 days before the original offer expires. We won't need a client signature or involvement from a conveyancer.
Offer extension forms:
Builders' financial incentives and deposits
Our approach
- We accept builders' financial incentives up to 10% of the property purchase price
- Where the value of the incentive is >5% and <=10%, this will be deducted from the purchase price to create a net purchase price
- If the incentive is >10% of the purchase price, the case will be declined
- Applicants must provide a minimum of 5% deposit from their own resources, excluding any builders incentives
- The LTV will be calculated on the lower of the purchase price (or net purchase price, where applicable), or the valuation.
Financial incentives
- Builders' deposit
- Cashback (single lumpsum payments only)
- Stamp Duty contribution
- Above market value part exchange
- Solicitors fees
- Valuation and estate agent fees.
Accepted builder warranties
The warranty must have been issued as a result of periodic checks of the property during the construction or conversion process. A retrospectively applied for and issued building warranty insurance is not acceptable.
- ABC+
- Advantage Home Construction Insurance (HCI Ltd)
- ARK Residential New Build Latent Defects Insurance
- Build Assure (New Homes Structural Defects Insurance)
- Build Zone including Self Build Zone (excluding self-builds under construction)
- Building Life Plans (BLP) (excluding self-builds under construction)
- CADIS New Build Warranty Scheme - New provider
- Castle 10 / Checkmate
- FMB Latent Defects Policy
- Global Home Warranties Limited (10-year Structural Defects Insurance Policy)
- HomeProof New Build 10 (formerly Aedis Group)
- International Construction Warranties (ICW)
- LABC
- NHBC
- One Guarantee
- Premier Guarantee – including Hallmark New Home Warranty
- Protek New Homes Warranty
- Q Assure (The Q Policy).
The right team on hand
Call us on 0800 121 7788 if you’d like to chat to us about anything relating to a new build application.
We have a dedicated new build support team to help you every step of the way. And our experienced underwriters will use common sense to assess your case.
Plus, every broker gets two BDMs - one in the field and one on the phone.
Once you've submitted an application
We understand that new build cases can have challenging timescales and sometimes need urgent attention.
Our specialist team will work to your client's exchange and completion deadline. Our excellent service levels can give you confidence we'll meet their preferred dates.
If you need to apply for an extension on a new build property offer, just fill out our offer extension form. You can then return this to documents@thecoventry.co.uk.
