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Mortgages for New Build

Sometimes only new will do and when your client is looking to buy a new build home, that’s where we come in.

Place your case Place your case

The detail

Our flexible lending criteria is designed to meet the needs of your clients purchasing a new build home:

Loans available up to 90% LTV on new build houses

Up to 90% LTV on flats and maisonettes

6 month offer period with facility to extend

Shared ownership products available (excluding Own New Rate Reducer products)

Builder's gifted deposit accepted

Own New Rate Reducer products available

Introducing the Own New Rate Reducer mortgage

Lower rates for your specialist borrowers

As part of our Select range, Own New Rate Reducer uses the house builder's incentive* towards the cost of the mortgage, reducing the initial monthly payments during the 2 or 5 year fixed term.

Suitable for first time buyers** and home movers purchasing an eligible new build property from an approved house builder

Max loan £1.5m up to 85% LTV,
£1m up to 90% LTV

We’re able to accept Own New Rate Reducer applications in England, Wales and Scotland

Available exclusively via approved brokers who are registered with Own New.

For a list of approved house builders and how to register, please visit Own New.

For information including how to find Own New Rate Reducer in the sourcing systems, please visit our FAQs.

*Up to 5% of the house builder’s gifted incentive is acceptable for the Own New Rate Reducer product.
** We define first time buyers as those who have not held a mortgage or owned an unencumbered property in the last 12 months.

Our New Build service promise

Your New Build toolkit

We've pulled together a few useful links to help you in placing your new build client cases.

Shared Ownership

Learn all about our mortgages that support the government's Shared Ownership scheme.
Shared Ownership mortgages Shared Ownership mortgages

Residential Calculator

Use our residential calculator to see how much your client could borrow.
Use our residential calculator Use our residential calculator

View Our Latest Rates

Download our residential product guide to find what new build products are available.
Download residential guide Download residential guide

Frequently asked questions

  • We define a new build property as one which has never been lived in before.
  • Yes. For new build properties, our offers are valid for 180 days, with the ability to extend by a further 6 months.
  • Yes, we support the Government’s Help to Buy Shared Ownership scheme.
     
    This enables buyers to buy a share of the property on a leasehold basis and pay rent on the un-owned share.
     
    Find out more about our Shared Ownership mortgages.
  • The Help to Buy scheme closed for new purchases in October 2022 for England and Scotland, however, we are still accepting the Help to Buy Wales scheme.

    For those who bought their property with this scheme, you can still remortgage properties in England, Wales and Scotland.

  • Our acceptable warranty providers include:

    • Zurich Municipal
    • Premier Guarantee
    • BLP Limited Guarantees
    • Checkmate Castle 10
    • LABC New Home Warranty
    • Build Zone
    • Advantage HCI
    • Homeproof
    • Global Home Warranties
    • International Construction Warranties (ICW)
    • Protek (Not available in Northern Ireland)
    • Q Assure (Not available in Northern Ireland)
    • Ark
    • One Guarantee
    • ABC+
    • NHBC

Own New Rate Reducer frequently asked questions

  • First time buyers and those moving home wishing to purchase an eligible new build property via an approved house builder, can apply for one of the Own New Rate Reducer mortgage products.

    Kensington’s standard Select criteria will apply and the customer will be subject to Kensington’s standard affordability checks.
  • Participating house builders will offer an incentive to the buyer to access the Own New Rate Reducer mortgage. This incentive is applied towards the cost of the mortgage, reducing the initial monthly payments during the 2 or 5 year fixed term.

    The house builder will send a Letter of Acknowledgement (LoA) directly to you, as the authorised intermediary.

    This LoA along with a Rate Reducer Illustration (RRI) produced by you on the Own New broker toolkit, must be provided to Kensington with the mortgage application. The RRI includes a personalised illustration of how monies paid by the house builder will be used, including details of the fee paid to Own New for administering the scheme and the cashback, if applicable, to be paid to the buyer by Own New post completion.
  • Please visit Own New for a list of house builders that are participating in the Own New Rate Reducer scheme.
  • You must be approved by Own New before you can advise your client on any Own New Rate Reducer products. If you are already an approved broker, please visit Own New’s broker hub. If you would like to start the approval process, please register on the Own New website here: https://ownnew.co.uk/for-brokers/#Join_now
    • When you’re ready to apply for an Own New Rate Reducer product on behalf of your client, you, as the authorised intermediary, can do this via logging into the Kensington broker portal.

    • Please remember you will need to be registered and approved with Own New before you can submit an application with us. Please visit Own New for more information on how to register.

    • Your client must have confirmed with their house builder that they are eligible for the Own New Rate Reducer product.

    • You will need to include as part of your Day 1 requirements:
      • The Letter of Acknowledgement as proof of eligibility and the Rate Reducer Illustration.
  • Your client will lose any remaining benefit from the incentive as this incentive is passed on via the initial rate. In addition, they may have to pay an Early Repayment Charge which is outlined in the offer letter.
  • The incentive amount is either 3% or 5%. As the authorised intermediary, you need to choose the specific Own New Rate Reducer product for the relevant incentive amount.

    As part of your Day 1 requirements, you will need to provide:
    • The Letter of Acknowledgement (LoA) (which is proof of eligibility for the scheme and includes the % incentive amount) and
    • The Rate Reducer Illustration.
    Please note: Up to 5% of the house builder’s gifted incentive is accepted.
  • No. Kensington will use our standard residential affordability assessment to determine your client’s eligibility.
  • Suitable for first time buyers and home movers purchasing an eligible new build property from an approved house builder who would like the security of a fixed, lower cost monthly mortgage payment for the initial 2 or 5 year fixed period. Please visit Own New for a list of house builders who are participating in the scheme.
  • The maximum house builder’s incentive Kensington will accept is 5% of the purchase price. So, if you, the authorised intermediary, have chosen the Own New Rate Reducer 5% product, then no other house builder incentives can be used. If you have chosen the 3% scheme, then a further 2% house builder incentive can be applied, if available.
  • 27tec
    When using 27tec, choose the filter for “Homebuyer Schemes”.

    Iress
    When using Iress, source on standard residential mortgages which then gives the option to filter by Own New.

    Mortgage Brain
    When using Mortgage Brain, source on standard residential mortgages and Own New Rate Reducer will appear under New Build. There is no specific filter for Own New Rate Reducer on Mortgage Brain.

Need more details?

Product guide Product guide Lending criteria Lending criteria