New Build

We're aware of the importance of obtaining a quick offer on a New Build application, so here are some Top Tips

• The valuer must have access to the UK Finance Disclosure Form in order to value the property. Please make sure this is available when they visit the property/site.
• When completing an initial Decision In Principle (DIP), please review the maximum loan to value (LTV). We won't ask you if the property is a New Build at this stage of the application.
• Please ensure you provide proofs as soon as you can as we may request additional proofs. This will enable us to complete the underwriting on the case quicker.

Our New Build loan to values (LTVs) differ to our standard LTVs.

*You must check the relevant LTV and maximum loan size based on the type of application. The lowest LTV will apply.

Acceptable application types for New Build applications are:

• Standard Buy to Let
• First Time Landlords
• Portfolio
• Limited Company
• Houses in Multiple Occupation.

The value of all incentives must be declared on the UK Finance Disclosure Form (opens in a new window) and the current version of the form must be used.

Standard purchase cases 

• Builder deposits, cashback and any other financial incentives (including vouchers) listed in Section 7 of the UK Finance Disclosure Form are acceptable, up to a maximum total value of 5% of the purchase price or valuation. If the total value is more than 5% we'll decline the case. The value of incentives will need to be reduced to 5% or lower.

Vendor cashback

• We'll treat as Vendor Cashback where cashback on properties have recently been (or are in the process of being) upgraded or converted into flats by a developer. Except if they're developing several properties on several sites at the same time.
• We deduct the value of the Vendor Cashback from the purchase price or valuation*, which gives the net purchase price. We base our lending on whichever is lower, the net purchase price or net value.

*whichever is lower

All mortgage offers are valid for 6 months from the date of the first offer.

However, for New Build we’ll consider extending this by 45 days, subject to eligibility.

If there are 30 days or less until their mortgage offer expires, you can request an extension by emailing us at TMW.Applications@themortgageworks.co.uk. You'll need to provide details of the account number, customer name and confirmation that there have been no material changes to the application.

To help us process your request, please submit your request no later than 15 days before the offer is due to expire. Please complete a new application if you know your client will be unable to complete within the extended offer period. No further extensions will be available.

You can submit New Build applications via TMW Online (opens in a new window).

If new, or built within five years, the security must have a warranty guarantee. The Building warranties we'll accept include:

• NHBC
• LABC
• Build-zone
• Premier Guarantee
• One Guarantee
• CADIS
• ABC+
• Build Assure (New Home Structural Defects Insurance)
• Checkmate's Castle 10 (where out buildings such as a detached garage are also being constructed, an endorsement to include these in cover is required).
• Global Home Warranties (Structural Defects Insurance)
• The Q Policy for Residential Properties (provided by Q Assure Build)
• The Q Policy for Bespoke Properties (provided by Q Assure Build) - detached only
• International Construction Warranties (ICW) - an endorsement will be required to include it in the cover, if the property has a flat roof greater than 10 square metres.
• Ark Residential New Build Latent Defects Insurance - where a detached garage/outbuilding has been constructed at the same time as the main building, the policy must include an endorsement confirming cover for the detached garage/outbuilding.
• Advantage
• Homeproof (formerly Aedis)
• BLP - formerly known as Building Life Plan (excluding self builds under construction). These policies are underwritten by Allianz Global but written by BLP.
• Protek
• TMSC
• Professional Consultant's Certificate (PCC) issued by an Architect/Surveyor. The Certificate is checked by the solicitor and must comply with the requirements of the UK Finance Lenders Handbook.*
• CRL - This company is no longer issuing policies. We do accept the New Build 10 year structural defects insurance policy for residential property.**

* PCCs are acceptable for newly built homes within a development of no more than 10 units. A maximum of 4 units within the structure where they're within a continuous structure. For example, a row of terrace houses or block of flats. We'll require a PCC for newly converted or homes which have recently been significantly altered or refurbished. Retrospective certificates by a professional who has not supervised the project from the start and inspected the build at regular intervals are not acceptable.

** The Mortgage Works will only accept a CRL New Build 10 year structural defects insurance policy in the following circumstances:

• The final certificate is dated 04/09/2019 or earlier, and the underwriter is International General Insurance Company (UK) Ltd (IGI) or CGICE
• The final certificate is dated 05/09/2019 or later, and the underwriter is International General Insurance Company (UK) Ltd (IGI) and the final certificate has been signed by Ark Insurance Group Ltd. Arks final certificates are titled: ‘10 year Structural Defect Insurance Policy’. All final certificates signed off by Ark are proof that the warranty is acceptable.

We won't accept the warranties in the following circumstances:

• On New Build properties underwritten by Alpha.
• Non New Build properties being sold by first or subsequent owner and properties under five years old, with the warranty underwritten by Alpha.
• If another building warranty has been issued that's not listed above, or you have any questions, please contact us on Broker Chat.

New Build property lease terms (includes office conversions)

• Minimum acceptable lease term:
  • 125 years for flats
  • 250 years for houses

• As per the Leasehold Reform Act 2022 the following lease terms are unacceptable:
• any lease which is subject to a ground rent (or annual rent) being charged which is more than on a peppercorn basis
• any lease which is subject to a ground rent (or annual rent) being reviewed and altered on any review basis or methodology.

This applies to any lease transferred for the first time or extended after 30 June 2022. Where a head lease or under lease was created prior to 30 June 2022, but was transferred for the first time after this date, the lease will be required to conform to the Act. The applicants’ solicitor will need to confirm that the lease meets these requirements.

New Build Estate Charges

• Estate Rent Charges, or Estate Management Charges, can apply to freehold or leasehold properties.
• Charges must be reasonable at all times. Where charges are greater than £500 per annum, you'll need to advise us on what the charges cover, so the valuer can assess whether the valuation is affected.

You can escalate a New Build case if:

• All documentation requested has been uploaded to the application and
• We've had the application for 14 working days or more and/or
• Imminent exchange/completion is due (i.e. within the next 5 days)

When you need to escalate a case, call 0345 607 22 45.