Best New Build Mortgage Rates Compared

Whether you’re a first time buyer looking for an entry level home or are selling a property to buy a larger new build, you’ll want to be sure you’re getting the best deal, but what should you expect in terms of rates on a new build mortgage?

Take a look at our rates table below to get an idea of the deals available for new build mortgages:

*All of the rates and terms above are purely for example purposes, were correct when we updated this article (April 2023) and are subject to change at any time at the lender’s discretion*

How to compare new build mortgage rates

The best way to compare rates is with the help of a mortgage broker who specialises in new build property finance. That way, you will gain access to every deal on the market, including broker-exclusive ones that aren’t available to the general public.

Make an enquiry with us and we’ll match you with a new build mortgage specialist for free. They will guide you through the following steps to boost your chances of landing the best rate:

• Searching the entire market for the best new build mortgage deals
• Finding one that fits your needs, requirements and budget
• Completing the paperwork and filing your application

What is a typical rate for a new build mortgage?

It’s hard to give a ‘typical’ new build mortgage rate because it does very much depend both on how much deposit you have to put towards it, whether you have a healthy credit history or not, and the type of mortgage you’re looking for. However, at the time of writing (April 2023) you can expect an interest rate of anywhere between 4% and 6%.

You may find though you’re charged a slightly higher interest rate for a new build mortgage than you might for a mortgage on an older home. This is due to the ‘new build premium’ – the idea that builders charge more for new homes than you’d pay for the equivalent older home to account for benefits like having a guarantee and better energy efficiency.

This presents a higher risk to lenders as it means that new build properties don’t always hold their value in the same way, at least initially. As a result, eligibility criteria can also be stricter on new builds and some lenders will set lower maximum LTVs than for older properties, particularly on new build flats.

What rate to expect if you’re remortgaging

If you’re remortgaging your new build home you may find that you qualify for slightly better rates than if you were looking for a new mortgage. At the moment you should expect a rate of between 4%-6%. This is because over time you build up equity in your home – both by making payments on your mortgage and through increases in property prices – and so have a lower LTV when you remortgage.

It will depend of course on whether you are remortgaging simply to get a better deal or if you’re looking to release some additional equity – if it’s the latter then your LTV will be higher and you may not be eligible for the same deals.

Why use Online Money Advisor?

If you’re considering buying a new build home and want to make sure you get the best interest rates, you’ll want to find a mortgage broker who has an understanding of the new build market and the deals and incentives that you might be eligible for, and we will match you with one for free.

Get in touch now, either by calling us now on 0808 189 0463 or making an online enquiry. We can look at your circumstances and what you need from your mortgage and arrange a no obligation chat for you with the broker we think has the most relevant experience for you. Our broker matching service is completely free of charge so you’ve got nothing to lose.