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

Where your New Build application applies to a scheme, please refer to our Housing schemes page for specific LTVs. 

Please ensure you check the product finder for the current rates.

Help to Buy, Shared Ownership, Forces Help to Buy and other housing schemes can support your client. Read more on our Housing schemes page.

Read all about our construction information and criteria on our New Build construction page.

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 (including Shared Ownership)

• 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.

Equity loan cases

• Builder deposits and cashback are unacceptable on New Build equity loan cases.
• Other financial incentives 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*.
• We base our lending on the full purchase price or valuation*.
• Your client must provide a minimum 5% deposit from their own resources (this can include gifted deposits).

Builder non-financial incentives

• Builder non-financial incentives (for example kitchen upgrades, fitted appliances, home fittings/furnishings, flooring, garden landscaping etc) are accepted on all New Build applications in addition to financial incentives.

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

When a new property is built, the developer will provide a guarantee to ensure the building has been constructed to a standard set by the warranty provider. This is to ensure that any issues related to the property post-completion are covered by an insurance policy. It's unlikely that any mortgage provider will lend on a property without a warranty.

At Nationwide, the Building warranties we'll accept include:

• NHBC
• LABC
• Build-zone
• Premier Guarantee
• Architect/Surveyor's Certificate (the architect/surveyor needs minimum qualifications and indemnity cover which the solicitor will check in accordance with the CML handbook)
• Advantage - There must be no more than ten units in any continuous structure
• CRL New Build ten year structural defects insurance policy - only where the insurer is International General Insurance Company (IGI). We can only accept certificates, dated on or after 05/09/2019, that are signed by Ark Insurance Group. 
• BLP (Building LifePlans Ltd)
• Protek
• Checkmate

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 the New Build support team.

• Minimum acceptable lease term (doesn’t apply to Shared Ownership):
  • 125 years for flats
  • 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 always be reasonable during the lease term. For example, ground rent escalation should be linked to Retail Price Index or similar, and unreasonable multipliers of ground rent will not be permitted, e.g. doubling every 5, 10 or 15 years.
• Ground rents with a review frequency of 5 years or less are unacceptable.

Read all about our valuation policy and processes on our New Build valuations page.

New Build applications can be submitted via NFI Online and MTE.

If you're submitting a Help to Buy application, you'll need to key the case as an Equity Share Loan. Download our Equity Share Loan keying guide for more help.

A UK Finance Disclosure Form must be included in the application.

UK Finance Disclosure Form

Offers are valid for 180 days, 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 on our online form.

You should only contact us if the original offer is within 30 days of expiry. To help us process your request, please submit no later than 15 days before the offer is due to expire.

You'll also need to confirm that there have been no material changes to the application. This includes, but is not limited to; being furloughed, reduction in hours, loss of job, change in employment or new loans / credit cards. Where material changes to income are declared, we'll require up to date proofs and the case will be re-assessed. If proofs are required, we'll add a case requirement when an extension request is received.

For non-simultaneous porting cases, if the offer extension is agreed, we'll also agree to extend the 180 day non-simultaneous port period to the new offer expiry date.

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.

Please be aware that you can't apply for an extension when the offer has expired. Once an offer has been extended, you’ll be unable to make any material changes to the application.

If you have a client who is in the last month of their 180 day non-simultaneous port period without an offer in place, for example where they have not found a new property yet or their purchase has fallen through due to the impacts of Covid-19, please contact your BDM.

Your client will receive an automated text message to confirm the offer is due to expire, even though it may have been extended. This is nothing to be concerned about and the email you receive confirming the offer extension supersedes this. You may want to make your client aware to ignore this text message where an extension has been applied for and granted.

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.