100% New Build LTV Mortgage
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100% New Build LTV Mortgage
Michal Iwinski is here to explain how the process for 100% Loan to Value (LTV) mortgages on new build properties works.
Podcast approved by The Openwork Partnership on 27/08/2025.
Can I get a 100% LTV mortgage on a new build property?
Yes, it is possible to obtain a 100% LTV mortgage on a new build property.
How much can I borrow at 100% LTV for a new build property?
The current scheme and product available (in August 2025) allows borrowing up to £600,000, but you must meet the lender’s criteria.
Can I get a 100% LTV mortgage on a new build property if I’m a first-time buyer?
Each lender may have different definitions of a first-time buyer. For an LTV mortgage, applicants should not have owned any property in the UK for the last three years.
What are the eligibility criteria for a 100% LTV mortgage on a new build property?
To be eligible for a 100% mortgage, clients must meet all of the following criteria:
- Be at least 21 years old.
- Not have owned any property in the UK in the last three years.
- Have proof of having paid at least 12 months’ consecutive rent within the last 18 months.
- Have no missed payments, debts or credit commitments (e.g. mobile phone bills) for the last six months.
- Not be looking for a mortgage term beyond their expected retirement age.
- Not be looking to buy property in Northern Ireland or the Isle of Man.
Additionally, if using a deposit, it should be less than 5% of the purchase price, and the property price should be no more than £600,000 (in August 2025).
Do I need a guarantor for a 100% LTV mortgage on a new build property?
No, you do not need a guarantor for a 100% LTV mortgage.
How is affordability calculated for a 100% LTV mortgage on a new build?
The maximum loan-to-income cap might be 4.49 when the income is less than £40,000 a year. If the applicant earns more than £40,000, it could be up to 4.75 times their annual salary. You would need to speak to a mortgage broker for the current options available.
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Can I get a 100% LTV mortgage on a new build property with bad credit?
Obtaining a mortgage with bad credit, CCJs (County Court Judgments) or defaults might be challenging, especially for high LTV mortgages. The general rule is that a lower deposit may require a better credit profile by the lender, due to the increased risk.
For a 100% mortgage offer, applicants should not have missed any bills, repayments, or credit commitments in the last six months. It is advisable to consult a mortgage advisor to explore options if this applies.
Do 100% LTV mortgages have higher interest rates?
Yes, 100% LTV mortgages do have higher interest rates. It is recommended to ask a mortgage advisor for illustrations to understand potential monthly payments and determine affordability.
What are the pros and cons of a 100% LTV mortgage on a new build property?
Taking out a 100% mortgage exposes applicants to the risk of negative equity, which might be even riskier when buying a new build property. The market may not have tested the area being developed, so the future value of the property could be uncertain – and this could have a significant impact for individuals who do not have a deposit.
Additionally, applicants may need to meet very specific eligibility criteria. However, a 100% mortgage could allow individuals to buy a home without needing to save for a deposit, enabling them to get on the property ladder sooner and acquire a home before property prices increase.
How do I apply for a new build 100% LTV Mortgage?
It is possible to apply once all eligibility criteria are met, which varies from lender to lender, and you are confident that this mortgage is suitable, having considered all its pros and cons.
It is strongly recommended to consult a mortgage advisor as soon as possible. The criteria for a 100% mortgage is stricter than a typical mortgage and could require several months of preparation. A mortgage advisor can guide you through the available options and assist with these preparations.
Approved by The Openwork Partnership on 27/08/2025.
Podcast recorded and article created in August 2025 – Please note that all information is correct at the time of recording.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.