Best Remortgage Lenders for New Build Properties

Why New Build Remortgages Are Different

When you first purchased your new build property, the purchase price may have included a premium over second-hand comparable properties — a common feature of new builds. Lenders are aware of this and often apply a reduced LTV limit for new build properties compared to existing stock, particularly for flats.

For new build houses, most lenders apply LTV limits of 85% to 90%, which is broadly comparable to standard properties. For new build flats, the restrictions are more significant: many lenders cap LTV at 75% to 85%, and some will not lend on certain types of new build flat at all (for example, those above 10 storeys, those in certain postcodes, or those with cladding-related issues).

By the time you come to remortgage — typically after your initial fixed rate period of two to five years — some of these new build restrictions may have eased, and the property will no longer be classified as new. However, if you are remortgaging within the first few years of ownership, new build criteria may still apply depending on the lender's definition.

Leasehold tenure is another key issue. New build flats are almost always leasehold, and the remaining lease length at the time of remortgaging affects which lenders will consider the application and at what LTV. Understanding the minimum lease lengths required by different lenders — and whether a lease extension should be obtained before remortgaging — is an important part of planning.

Top Lenders for New Build Remortgages

Nationwide: Nationwide is widely considered to have one of the most comprehensive and borrower-friendly new build policies among mainstream lenders. It actively supports new build lending at purchase and at remortgage, offers competitive rates, and has clear criteria for both houses and flats. Nationwide accepts a reasonable minimum lease length (typically 70 years remaining at the end of the mortgage term) and has straightforward policies on ground rent and service charges.

Halifax: Halifax is another strong option for new build remortgages and has an established track record in the new build market. It applies new build LTV restrictions broadly in line with industry norms and has a reasonable lease length policy. Halifax is part of Lloyds Banking Group, which gives it significant capacity to handle new build applications at volume, making it a reliable choice for straightforward cases.

Barclays: Barclays participates actively in the new build market and offers products for both houses and flats. Its new build criteria are clearly published and it takes a pragmatic approach to standard new build applications. Barclays has an efficient remortgage process and is known for good customer service in this area.

Santander: Santander is a consistent player in the new build space and offers remortgage products for new build properties with clearly defined criteria. It is worth checking Santander specifically for new build flat remortgages where the property's specification falls within standard criteria, as it is sometimes competitive on rates in this segment.

For new build flats with more complex characteristics — such as those with remaining cladding issues, high-rise properties, or those with problematic ground rent clauses — specialist and intermediary-focused lenders such as Accord may be worth exploring. Cases of this nature typically require broker involvement to identify the most appropriate and accessible lender.

New Build LTV Restrictions and Lease Length Requirements

Understanding the LTV and lease restrictions that apply to new build remortgages allows you to plan ahead and avoid surprises during the application process.

LTV restrictions for new build flats: Many lenders apply a maximum LTV of 75% to 85% for new build flats, compared to 90% or more for existing stock. Some lenders — particularly those that rely heavily on automated valuation models — may simply decline certain types of new build flat outright rather than trying to assess them case by case. Lenders with stronger new build departments, such as Nationwide and Halifax, are generally more willing to consider a wider range of new build flat applications.

Minimum lease length: Lenders require a minimum number of years to remain on the lease at the end of the mortgage term, not just at the point of application. A typical requirement is 70 to 85 years remaining at the end of the term. If your lease is running short, this can become a barrier. A lease extension before remortgaging can resolve this issue but takes time and has its own costs. Some lenders will accept a shorter remaining lease if a lease extension is already in progress, but this varies.

Ground rent: Following the Leasehold Reform (Ground Rent) Act 2022, newly created leases on residential properties cannot charge more than a peppercorn ground rent. However, older leases may still have escalating ground rent clauses. Lenders — particularly those that have been stung by the ground rent scandal — now scrutinise ground rent terms carefully. Ground rents that exceed 0.1% of the property value annually are problematic with many lenders.

How Builder Incentives Are Treated at Remortgage

When you purchased your new build property, you may have received incentives from the developer — cashback, upgraded fixtures, paid stamp duty, or other benefits. These incentives affect how lenders assessed the true purchase price at the time. At remortgage, this is typically less of a concern as the valuation will be based on current market value rather than the original purchase price.

However, if you are remortgaging within the first year or two of purchase, some lenders will still consider the original purchase price and any incentives received when assessing the current LTV. This is because the lender may be sceptical about whether the property's current value truly exceeds the original purchase price, particularly for flats in a new development.

For remortgages several years after purchase, builder incentives are generally not a direct concern. The property will be valued on its own merits at the time of the remortgage application, and provided the valuation supports the LTV required, most lenders will proceed without reference to the original purchase incentives.

The most practical advice for new build remortgagers is to engage a whole-of-market broker who regularly handles new build cases. The nuances of new build criteria, lease terms, and valuation practices are specialised enough that a general broker without specific new build experience may miss key issues or submit to lenders unlikely to accept the application.