New Build Mortgage NI

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New Build Mortgage NI

Diarmuid Phoenix explains the new build mortgage process in Northern Ireland.

Is it hard to get a mortgage on a new build? What’s the process in Northern Ireland?

It’s not necessarily hard to get a mortgage on a new build here, but it can be more restrictive and more admin-heavy than for an older property.

The first step is to get an Agreement in Principle or Decision in Principle (DIP). Then you’ll reserve the property, which is a little different to the standard process, and you pay a booking fee.

The process then moves on as normal – you submit the full mortgage application, there’s a lender valuation, and then underwriting based on your documents and affordability.

If all that’s okay, the lender issues a mortgage offer, and it’s passed to legal professionals for conveyancing, contract exchange and completion.

How long does the new build application process take?

It can take a bit longer, obviously because many properties are still being built when customers secure them. Naturally, there’s a longer wait for completion. It’s not unheard of to wait 12 months or more before you have the keys in your hands.

It totally depends on the completion status of the new build. Some new builds are already finished by the time they’re sold, in which case it’s not too different to buying an existing property.

Who can get a mortgage for a new build? Do you have to be a first-time buyer?

No, you don’t have to be a first-time buyer to get a new build mortgage. You could be buying for the first time, moving home, upsizing or downsizing. You could be investing in a Buy to Let, although some developments restrict that.

New build mortgages are also open to self-employed people, limited company directors, and people using Co-Ownership in Northern Ireland.

The key question for lenders is whether you can afford it, and if the property is acceptable as security. Whether you’ve owned before is irrelevant.

How much deposit do you need for a new build in Northern Ireland? Can I buy a new build with no deposit?

For a new build house, you’ll need between 5% and 10% deposit, and for a flat or apartment you need 10% to 15%. On a Buy to Let, you need at least 25%.

That will depend on the lender and the developer, and whether it’s fully built or off-plan. Your income and credit profile have an effect as well.

There won’t be any zero deposit mortgages on new builds unless you’re going through the Co-Ownership scheme. We’ve covered Co-Ownership at length on other podcasts, but there are two or three lenders here in Northern Ireland that can accept zero deposit on that scheme, and that will include new builds [information correct at the time of recording in May 2026].

How much can I borrow? Can I get a 95% mortgage on a new build?

You can get a 95% Loan to Value mortgage on a new build here, but it’s more restricted and more selective in terms of lenders.

It usually applies to new build houses – they don’t offer 95% loans on flats, as they are seen as a higher risk. It’s mainly because of concerns about drops in valuation. Lenders typically offer 90% mortgages for that reason. In the first few years, new build homes may not hold their value, or developers could overvalue the properties in a lender’s eyes.

The amount you can borrow will ultimately depend on your income and your outgoings – the same as on an existing property. The usual income multiples apply, along with credit commitments, children, etc.

What schemes are available on new build properties in Northern Ireland?

Co-Ownership is the main one in Northern Ireland. It’s called shared ownership in England, Scotland and Wales. You purchase a proportion of a property, usually between 50% and 90%, and you rent the rest. Many new builds offer this scheme, but there’s a property value cap of £215,000.

There are other schemes including developer incentives, where you can receive a discount which can act as a deposit – or part of one. Lenders have to be informed of and approve that incentive, and that’s very important [information correct at the time of recording in May 2026].

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Do you pay stamp duty on a new build in Northern Ireland?

Yes, depending on the value. New builds are treated the same way as any other property and in Northern Ireland you pay stamp duty based on the purchase price. There’s no exemption or automatic discount just because it’s a new property.

Are mortgage rates higher for new builds? Are there any other costs involved?

They can be higher, but not always, and not by much. Mortgages at 90% Loan to Value or higher on new builds can be 0.1% to 0.5% higher than others. At an 85% Loan to Value, though, mortgage rates tend to be pretty similar.

Other costs with new builds include developers’ extras. That tends to be the biggest jump for most people, and cover upgrades to the kitchens, bathrooms, carpets, flooring and appliances. It can include groundworks outside and exteriors that aren’t in the original spec.

Those can add up significantly.

Can I get a mortgage on a new build with bad credit?

Yes, you can, but it becomes harder and more expensive in some cases. The lender choice is more limited, especially for new builds. There are tighter rules because lenders worry about values decreasing.

When you add bad credit into the mix, lenders impose even tighter criteria like larger deposit requirements and less favourable rates.

How do I remortgage my new build property?

Remortgaging a new build is similar to any other property. There can be differences around valuations, equity and lender appetite, especially in the first few years.

Some new builds just about hold their value in the early years after they’re built. That can affect the Loan to Value ratio and the availability of decent rates when remortgaging.

Some lenders actually consider the original new build price to be overinflated, which again can affect remortgage deals. It’s important to take that into consideration when looking at your first remortgage.

What are the pros and cons of new build mortgages?

The big pro is that you’re buying a brand new property and it will usually be more energy-efficient. Also, the incentives from developers can be an advantage.

It’s a chain-free purchase, so you’re not going to be waiting for somebody to move out of the property before you move in, and usually the price is set, so there’s no bidding war driving prices up.

New properties will be lower maintenance, although there can be snags when you move into a new build. Fixing those is usually free in the first couple of years.

One downside of a new build mortgage is potentially a higher deposit requirement. There can be higher rates and higher Loan to Value ratios. There’s also the risk of the property being downvalued to less than the original price when you’re remortgaging.

Building delays can be the biggest one – and I have personal experience of that. There can be several months’ delay. There is also limited lender choice and developers’ extra costs to consider.

You’ve demonstrated how a mortgage broker can help. Is there anything else to consider?

Speaking to a broker is the first thing you should do. We know our way around the market and the ever-changing criteria. We can help you navigate through it in a much smoother, more efficient way than you could yourself.

Key Takeaways:

Getting a new build mortgage in Northern Ireland can be more restrictive and involve more administration than for an older property.
The application process often takes longer, sometimes 12 months or more until completion, especially if the property is still under construction.
Deposit requirements range from 5% to 15% depending on the property type, and while 95% Loan to Value mortgages are available for houses, they are restricted and generally not offered for flats due to higher risk.
The main scheme available is Co-Ownership, where you purchase a proportion of the property (50% to 90%) and rent the rest, subject to a property value cap of £215,000.
Key drawbacks include the risk of building delays, the potential for the property to be downvalued during remortgaging, and additional costs for developers’ extras and upgrades.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

For specialist tax advice, please refer to an accountant or tax specialist.

The information contained within this article was correct at the time of publication but is subject to change.