England new build first time buyers: Your First Home, 15 year warranty

IMPORTANT: YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

A first-time buyer can purchase a new build in England, subject to eligibility, mortgage affordability, and any price caps attached to the scheme in use. A new government route, Your First Home, may widen access further once confirmed at Budget. The next step is practical: check the property's price cap, confirm the developer is signed up to relevant schemes, and speak to an adviser, such as Haven Mark Advisers, before reserving.

TL;DR:

Buyers should verify property price caps and developer participation in government schemes before reserving a new build property.

Lenders may scrutinize new-build mortgages more closely, especially above 80-90% loan-to-value, due to higher arrears risk.

Additional costs like buildings insurance, solicitor fees, and ground rent can significantly increase the total expense beyond the purchase price.

Developers are legally required to provide a 15-year warranty, and missing this can complicate future resale and legal protection.

Engaging a dedicated mortgage adviser early can help navigate scheme rules, lender criteria, and streamline the process from reservation to completion.

Haven Mark Advisers

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A dedicated adviser can help first-time buyers understand lender criteria, scheme rules, and the steps from reservation to completion.

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Eligibility and government schemes for new build first-time buyers
Funding a new build: deposits, mortgage shapes and affordability testing
The true cost of a new build beyond the price on paper
Legal and warranty checks unique to new builds
How the mortgage process works and where a dedicated adviser helps
Step-by-step checklist from reservation to completion
How Haven Mark Advisers can help you secure a new-build mortgage
Sources
FAQ

Eligibility and government schemes for new build first-time buyers

First-time buyers in England pay no Stamp Duty Land Tax on the first £300,000 of a purchase and 5% on the portion between £300,000 and £500,000, provided the property costs no more than £500,000 and the buyer has never owned residential property anywhere in the world, as set out in GOV.UK's relief guidance. Above £500,000, standard rates apply and the relief is lost entirely.

A newer route may change the deposit maths substantially. On 26 September 2026, the government confirmed plans for Your First Home, a scheme offering eligible buyers a low deposit backed by a government equity loan on new builds sold by participating developers. Income caps, price caps, and the full list of participating developers were still to be confirmed at Budget.

Buyers with a Lifetime ISA can also withdraw funds charge-free towards a first home, provided the account has been open at least 12 months and other conditions are met.

Before reserving a plot, work through this:

Confirm the property's price sits within any applicable scheme cap.
Ask the developer directly whether they participate in Your First Home or other schemes.
Check Lifetime ISA timing rules with your conveyancer well before completion.

Funding a new build: deposits, mortgage shapes and affordability testing

Most new-build mortgages still expect a deposit of at least 5% to 10%, though schemes such as the equity loan route proposed under Your First Home could reduce that upfront cash requirement for eligible buyers once details are confirmed. Lenders often treat new builds with more caution than resale homes, partly because FCA research has found that mortgages linked to government-supported initiatives and new-build properties show higher arrears risk once other borrower characteristics are accounted for, and that risk rises further as loan-to-value climbs above 80% to 90%.

Funding a new build: deposits, mortgage shapes and affordability testing — overview diagram

That does not rule out a 95% mortgage on a new build, but it does mean lenders apply closer scrutiny and firmer stress testing to these deals. Affordability assessments follow FCA rules requiring lenders to check whether a borrower could still afford repayments if interest rates rose, not just at today's rate.

For self-employed buyers or those with variable bonus income, lenders typically want:

Two to three years of accounts or tax returns.
Recent invoices or contracts showing income continuity.
A short written explanation of any income dips or changes.
Bank statements covering the past three to six months.

Pro Tip: Keep three to six months of mortgage payments in reserve before completion, so a delay in your current job or a slow month in self-employed income does not put the purchase at risk.

The true cost of a new build beyond the price on paper

The headline price is rarely the full picture. Stamp Duty relief covers the first £300,000 for first-time buyers, with 5% due on the slice up to £500,000 under GOV.UK's guidance; above that threshold, relief disappears and standard rates take over.

Buyers must have buildings insurance in place from exchange of contracts, according to MoneyHelper, which matters because many buyers assume cover only needs to start at completion.

Other costs to budget for include:

Solicitor and conveyancing fees, quoted separately from the purchase price.
Mortgage product or arrangement fees, which vary by lender.
A reservation fee paid to the developer to secure the plot.
Estate rent charges, service charges, or ground rent on many new-build developments.

Utility connections and council tax banding on a newly built property can also differ from an equivalent resale home, so factor both into ongoing affordability rather than assuming they mirror a similar older property nearby.

Legal and warranty checks unique to new builds

New builds come with legal protections that resale properties do not, and missing them can be costly later.

Developers in England are legally required to provide a new-build home warranty, and that cover must run for at least 15 years from the date the interest is granted, under Legislation.
Ask your solicitor to verify the warranty provider's name, the policy's registration, and whether it transfers to future owners if you sell.
Check the reservation agreement for estate rent charges, management company obligations, and any restrictions on alterations or subletting.
Do not exchange until buildings insurance is arranged and the warranty details are confirmed in writing.

These checks protect both your immediate purchase and the property's resale value, since a missing or unregistered warranty can complicate a future sale.

How the mortgage process works and where a dedicated adviser helps

A new-build purchase moves on the developer's timeline as much as the buyer's, which is where a single point of contact through the mortgage stage makes a practical difference. Each client can benefit from a dedicated adviser throughout the process, from an initial affordability check through lender matching to submission and offer.

The adviser reviews income, deposit, and scheme eligibility before recommending lenders.
Whole-of-market access matters for professionals with variable income, such as contractors, self-employed business owners, or bonus-reliant finance and legal professionals, since not every lender treats these incomes the same way.
Typical documentation gathered includes proof of income, bank statements, identification, and deposit evidence, organised early to avoid delays against a developer's build completion date.
Fees are agreed upfront and set out on the fees page, so there is no ambiguity about what is payable and when.

Pro Tip: Book your first conversation with an adviser as soon as you reserve a plot, since developer completion dates often move faster than a standard mortgage timeline allows.

Remember: your home may be repossessed if you do not keep up repayments on your mortgage.

Step-by-step checklist from reservation to completion

Pay the reservation deposit and instruct a solicitor, gathering identification, income evidence, and deposit source documents.
If using a Lifetime ISA, confirm the 90-day completion rule with your conveyancer and check whether an extension applies.
At exchange, arrange buildings insurance to start immediately and get written confirmation of the warranty provider and registration.
At completion, transfer final funds, collect the keys, register the warranty in your name, and log any snagging issues with the developer promptly.

How Haven Mark Advisers can help you secure a new-build mortgage

Haven Mark Advisers

Buying a new build often means racing a developer's build schedule while juggling scheme rules, lender criteria, and paperwork. A dedicated adviser can help handle all aspects, with whole-of-market lender access and a document checklist tailored to your income type.

One adviser manages your case from first call to mortgage offer.
Whole-of-market searching, rather than a single lender's product range.
A tailored document list for self-employed, contractor, or variable-income buyers.
Transparent fees agreed before work begins, published on our fees page.

Visit our new build mortgages page to book an initial conversation and see how a dedicated adviser can support your purchase timeline.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Sources

This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.

FAQ

How much discount do first-time buyers get on new builds?

There is no automatic discount on the purchase price itself, though first-time buyers pay no Stamp Duty on the first £300,000 of a home costing up to £500,000, under GOV.UK relief rules. Some developers offer incentives such as contributions towards fees, but these vary by site and are not guaranteed.

Can I get a 95% mortgage on a new build?

A 95% mortgage on a new build is possible with some lenders, though FCA research shows higher loan-to-value lending on new builds carries higher arrears risk, so lenders apply closer affordability checks. Availability depends on the individual lender's criteria at the time of application.

Can I get a 200k mortgage on 40k salary?

Whether a lender approves that borrowing depends on individual affordability testing, existing debts, deposit size, and the specific lender's criteria, so no fixed multiple applies to every applicant. Speaking with an adviser about your full financial picture is the only reliable way to know what is realistic for your situation.

What is the government's 40% loan scheme for buying a house?

There is no confirmed 40% government loan scheme; the current announcement is Your First Home, which proposes a 2.5% deposit backed by a 20% government equity loan on eligible new builds. Full details, including caps and participating developers, are due to be confirmed at Budget.