100% New Build LTV Mortgage
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100% New Build LTV Mortgage
Charlie Connolly explains 100% Loan to Value new build mortgages.
Can I get a 100% LTV mortgage on a new build property?
Yes, it is possible to get a 100% LTV mortgage on a new build property.
How much can I borrow at 100% LTV for a new build property?
Typically you can borrow around 4.5 times your income, but this is subject to full underwriting checks on your personal information, going through your income and expenditure.
A broker will run that through the lender’s affordability calculator for you. One lender that currently offers 100% LTV mortgages allows borrowing of up to £600,000 [information correct at the time of recording in October 2025].
Can I get a 100% LTV mortgage on a new build property if I’m a first-time buyer?
Yes, first-time buyers are eligible for a 100% LTV mortgage. The lender currently offering a 100% product requires that you have not owned any property in the UK for the last three years [information correct at the time of recording in October 2025].
What are the eligibility criteria for a 100% LTV mortgage on a new build property?
You must be at least 21 years old, not have owned any property in the UK in the last three years, and have proof of paying at least 12 consecutive months’ rent within the last 18 months.
You also need to not have missed any payments on debts or credit commitments in the last six months. You can’t be looking for a mortgage term past retirement and the mortgage cannot be used for a purchase in Northern Ireland or the Isle of Man. It’s also worth noting that the purchase price can be no more than £600,000.
For a new build property, do I need a guarantor for a 100% LTV mortgage?
No, currently you don’t require a guarantor for a 100% mortgage.
How is affordability calculated for a 100% LTV mortgage on a new build?
The loan cap is still around 4.5 times income. Your best option is to speak to a broker like myself. I can go through a fact-find with you, looking at your income and expenditure. From there I can advise what your maximum borrowing is, according to the lender’s affordability calculator.
Can I get a 100% LTV mortgage on a new build property with bad credit?
Potentially. The lower the deposit, the harder it is to obtain a mortgage with bad credit. The lender currently offering a 100% scheme won’t allow any missed payments on debts or credit commitments within the last six months. It will also be down to credit score.
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Do 100% LTV mortgages have higher interest rates?
Yes, 100% mortgages have high interest rates, because it’s a high risk to the lenders.
What are the pros and cons of a 100% LTV mortgage on a new build property?
One disadvantage is the risk of negative equity, where the property value drops below the amount you owe on the mortgage. If your property is worth £200,000 when you buy, but it drops in value, you’re in negative equity.
Another drawback is higher interest rates. Your monthly payments are going to be more expensive, and there are many more eligibility criteria points to hit.
But on balance, the most significant advantage with a 100% mortgage is that you can purchase a property without needing a deposit. It gets you onto the property ladder sooner rather than later, and hopefully you will benefit from property values going up.
How do I apply for a new build 100% LTV mortgage?
Applying for a 100% Loan to Value mortgage is not too different to applying for a standard mortgage. You just need to make sure you meet the criteria for that particular product.
Once you’ve found a property you like, and you have a Decision in Principle in place, see your mortgage advisor. We will guide you through the process step by step.
What else do we need to know about getting a 100% LTV mortgage on a new build property?
100% LTV new build mortgages are a little bit more complex than a standard mortgage. A mortgage broker can really add value, with guidance to make sure you’re happy with the risks of taking on a 100% mortgage.
Key Takeaways:
- It is possible to get a 100% Loan to Value (LTV) mortgage on a new build property.
- Eligibility criteria include being at least 21 years old, not having owned property in the UK for the last three years, and proof of paying at least 12 consecutive months’ rent within the last 18 months.
- You can typically borrow around 4.5 times your income, up to £600,000, subject to full underwriting checks.
- 100% LTV mortgages generally have higher interest rates due to the increased risk for lenders.
- A significant advantage is the ability to purchase a property without a deposit, helping you get onto the property ladder sooner, but a disadvantage is the risk of negative equity if property values drop.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.