We are 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) as we'll not ask you if the property is a New Build at this stage of the application
• Where proofs are requested, please ensure that these are provided quickly. This enables the case to be underwritten and if any additional proofs are required, requested.

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, as the lowest LTV will apply.

Acceptable application types for New Build applications are Standard Buy to Let, First Time Landlords, Portfolio, Limited Company, and Houses in Multiple Occupation.

The value of all incentives must be declared on the UK Finance Disclosure Form 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 on standard New Build purchases.

• The maximum total value allowed is 15% of the purchase price or valuation*. If the total value is more than 15% of the purchase price or valuation*, the case will be declined.
• When the total value is less than or equal to 5% of the purchase price or valuation*, we base our lending on the lower of the full purchase price or value.
• Where the total value is more than 5% (but less than 15%) of the purchase price or valuation*, we deduct the amount above 5% from the purchase price or valuation*, which gives the net purchase price. Our lending is based on the lower of the net purchase price or net value. 

Vendor cashback

• Cashback on properties that have recently been (or are in the process of being) upgraded or converted into flats by a developer, are treated as Vendor Cashback (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. Our lending is based on the lower of 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 detailing 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. If you know your client will be unable to complete within the extended offer period, please complete a new application as no further extensions will be available.

New Build applications can be submitted via TMW Online.

Submit a case

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

• NHBC
• LABC
• Build-zone
• Premier Guarantee
• One Guarantee
• ABC+
• CRL New Build 10 year structural defects insurance policy for residential property*
• 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
• The Q Policy for Bespoke Properties - detached only
• International Construction Warranties (ICW)
• 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 - there must be no more than ten units in any continuous structure
• Aedis - there must be no more than 20 units in the structure.
• BLP - formerly known as Building Life Plan (excluding self builds under construction). These policies are underwritten by Allianz Global but written by BLP.
• Protek
• 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
• PCCs are acceptable for newly built homes within a development of no more than 10 units, and if within a continuous structure (for example, a row of terrace houses or block of flats) a maximum of 4 units within the structure.
• A PCC is also required for newly converted or recently significantly altered or refurbished homes.
• We won't accept retrospective certificates by a professional who has not supervised the project from the start and inspected the build at regular intervals.

*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.
• On second-hand properties being sold by first or subsequent owner and properties under two 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 on New Build properties is 125 years for flats and 250 years for houses.
• Maximum starting ground rent on all New Build properties with a leasehold tenure is limited to 0.1% of the property value.
• Ground rent must be reasonable at all times during the lease term. For example, ground rent escalation should be linked to RPI (Retail Price Index) or a similar index, and unreasonable multipliers of ground rent will not be permitted, for example doubling every 5, 10 or 15 years.

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, we’ll need to be advised 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.