Fixed rate increases plus new products

On Wednesday 22 July, we increased fixed rates in our new business and product transfer ranges. We also introduced some new products for FTB, home mover and new build clients. Read more.

New build lender

We’re committed to supporting the new build market and helping your clients buy their new build home. We're confident we're top choice for new build mortgages.

What sets us apart?

Specialist New Build Desk – Our highly experienced team understands the unique challenges, timelines and complexity of new build cases.
Improved affordability for all new build homes – we reflect the lower energy costs of new homes in our affordability assessment, which increases the amount your clients can borrow.
First major lender to have an Octopus Zero Bills proposition that completely removes monthly energy bills from our affordability assessment to boost the amount your clients can borrow by up to £29k.
Offers valid for 9 months – Providing certainty where longer build times are expected.
Attractive incentives available across all LTVs - including stamp duty, legal and estate agent's fees above 90% LTV (max 5%)
Generous income multiples for FTBs – We can offer lending of up to 5.50x income for higher earners, helping more FTBs step onto the property ladder.
Product transfers with no dual pricing – Your clients can stay with us for a product transfer with competitive rates and no dual pricing. New builds = new relationships.

Definition of a new build property

We'll consider a property to be a new build where all of the following applies.

The property was built or converted within the last 24 months, and
Was not previously occupied since build or conversion, and
Being sold by the builder or developer, and
Not previously used for residential purposes.
Where the property has been converted into a flat (from a house or commercial unit), we'll treat this as a new build where it's the first occupancy.

Key criteria

Application type	House	Flat
Standard residential	95%	95%
Shared Ownership	90%	90%
Buy to Let	75%	75%

New build house	Loans up to and including £570,000	95% LTV
	Loans over £570,000 and up to £1m	90% LTV
	Loans over £1m and up to £2m	85% LTV
	Loans over £2m and up to £3m	75% LTV
New build flat	Loans up to and including £380,000	95% LTV
	Loans over £380,000 and up to £1m	90% LTV
	Loans over £1m and up to £2m	85% LTV
	Loans over £2m and up to £3m	75% LTV

We'll accept a new build property if it's built under an approved scheme in accordance with requirements in the UK Finance Mortgage Lenders' Handbook in the ‘New Properties – Building Standards Indemnity Schemes' section. The schemes we accept include:

NHBC Buildmark
Premier Guarantee (New Homes; Self Build; Completed Housing (Retrospective))
ABC+
Aedis/Homeproof Structural Warranties (New Build 10; Self Build 10)
Advantage Structural Defects Insurance (ACHI)
Ark Residential New Build Latent Defects Scheme
BLP (Building Life Plans) residential housing warranty insurance (BLP Secure; BLP Secure Plus; TMSC)
BOPAS (Build Offsite Property Assurance Scheme)
Build Assure New Homes 10 year Structural 10 Defects Insurance
Build Zone 10 year warranty (New Home; Self Build; Completed Housing (Retrospective); Basic)
Cadis
Checkmate
CIR (Construction Insurance Risk)
Compariqo
Global Home Warranties 10 year Structural Defect Insurance
International Construction Warranties (ICW Residential New Build UK)
LABC Warranty (New Homes; Self Build; Completed Housing (Retrospective))
One Guarantee (New Home; Completed Home (Retrospective); Self Build; Conversion)
Protek (New Home; Custom Build; Self Build; Completed Housing (Retrospective))
Q Assure Build (Q Policy for Residential Properties)

We also accept a Professional Consultant's Certificate (Architect's Certificate) for single properties or small development of up to 10 units. This must meet UKFL requirements. We don't accept retrospective Professional Consultant's Certificates.

Incentives and more

Builders may offer sales incentives to prospective buyers to encourage them to purchase their properties. An incentive is anything the builder gives or provides to the buyer in cash or goods. The table below shows the incentives we will accept.

Incentive	New Build (including Shared Ownership)
Stamp Duty paid	✓ No financial limit.
Legal fees	✓ Reasonable fees for the purchase.
Carpets and curtains White goods/fitted furniture Cash or cashback up to 5% of the purchase price (can include retail vouchers) Part exchange	✓
Vouchers (provided they're in keeping with the value of the property)	✓ Builder Option Vouchers only which allow upgrades to fixtures and fittings that are in line with the property.
Deposit paid by seller Mortgage subsidies or rental subsidy on Shared Ownership Guaranteed rental income Show home with non-fitted furniture Free standing furniture (e.g. TV, lamps, mirrors) Estate agent's fees Removal fees	✓ Value included as part of the 5% cash.

A combination of incentives, such as 5% cashback, plus Stamp Duty and legals, is acceptable at 90% LTV. Please speak to our New Build Team if you have any questions.

Please note, we don't accept new build applications where any part of the applicant's deposit will be raised from an unsecured personal loan which is subsidised by a builder or developer.

Incentive

Standard New Build

Carpets and curtains
White goods/fitted furniture
Non-retail vouchers provided by the builder/developer for property related upgrades to fixture and fittings to be carried out by the builder

✓

Legal fees
Stamp duty paid
Estate agent's fees

✓

Combined amount must not be more than 5% of the purchase price.

Please note, we don't accept new build applications where any part of the applicant's deposit will be raised from an unsecured personal loan which is subsidised by a builder or developer.

Part exchange is available up to 90% LTV only.

Our new build offers are valid for 9 months for clients who take one of our new build property only products. The products also come with a 9 month completion deadline.

Exceptions apply to clients porting with no top up product or staying on SVR. In these cases, your client's offer will be valid for 9 months if they're buying a new build home.

The expiry date of the offer will be led by whichever comes first from the following:

The offer end date (9 months from the date of issue),
The product completion date (found on our latest mortgage rates when the product was selected), or
The valuation expiry date (new build valuations are valid for 9 months from the inspection date).

If you need to extend an offer you need to:

Upload the request to MATS and confirm the expected completion date,
Upload a new product to MATS if the current one has expired. The product can be updated at any time, and
Upload up to date proof of income.

We will then:

Re-score the case and complete a new credit search,
Make sure it still meets our lending policy and affordability assessment,
Request any further documentation (if needed),
Request a new valuation (if needed). Please note that a valuation can only be extended in the last 2 weeks of its validity period.

New build homes have lower than average energy costs due to better energy efficiency. We improved our new build affordability policy so your home mover and FTB clients can borrow more if they’re buying a new build home.

We're the first major lender to remove monthly energy bills from our affordability assessment for Octopus Zero Bills new build homes.

As Zero Bills homes are energy self-sufficient, our underwriters have the flexibility to remove energy costs from the affordability calculation.

In practice, this means your clients could unlock up to £29k more borrowing and Octopus guaranteed zero energy bills for at least 10 years.

We can now consider lending up to 90% LTV to eligible foreign national applicants without permanent right to reside in the UK.

This includes first time buyers and new build customers, where higher LTV options can make all the difference in taking that first step onto the ladder. View our foreign national lending criteria for more details.

Our New Build Team

Our New Build Team will work closely with you to ensure your cases complete on time. They'll:

manage pipeline cases that can’t be dealt with through your usual dedicated sales contact
escalate and take ownership of any urgent cases
deal with any complex new business enquiries
pass eligible Octopus Zero Bills cases to an underwriter.

Call us on 0800 085 1329 

Email newbuild.team@santander.co.uk 

For all general new business enquiries please continue to speak to your dedicated contact

Meet our new build team

Paul McCarthy, National Key Account Manager

I joined Santander in 1996 and started working with our National Key Accounts in 2006. Since 2014 I have also developed our New Build proposition managing our specialist team that liaises with the new housing sector. I enjoy attending my accounts’ broker facing events and presenting on the mortgage market. Outside of work I’m a runner and football fan who loves medieval history.

Bruce McDonald, Business Development Manager

I’ve got around 25 years’ experience working with brokers and have been a New Build Specialist with Santander for Intermediaries for 9 years. I manage a national panel of key new build firms, and my specialist knowledge helps support our wider team. Outside of work, I’m a keen runner and football fan. I’m married with 2 teenage children.

Stephen Davies, Telephone Business Development Manager

I’ve got over 13 years’ experience working for Santander. I started in the Admin Team and then moved into sales as a Business Development Consultant, before moving onto the New Build Desk. I’ve got lots of knowledge on new build policy and I’m fully skilled in system support. I’m Manchester based despite being from Liverpool. I’m a big Liverpool football fan and a season ticket holder.

Claire Thwaite, Telephone Business Development Manager

I’ve been with Santander for Intermediaries for 10 years now, working in the Sales Team. For the last 9 years I’ve been on the New Build Desk. I’m an expert on all things new build and have been involved in the improvements made to our offering. I’m married and have 2 young children, my oldest is 4 and youngest is 2 so needless to say I am kept very busy outside of work!

What else do you need to know?

Estate charges

Estate charges must be included in an affordability assessment. So, where your client has an estate charge to pay, please include the monthly amount in the affordability calculator (Expenditure > Service charge). Then at FMA make sure you:

include the monthly amount in the Property details > Service charge field, and

add a note to the general notes section to say that it relates to an estate charge.

New Build Shared Ownership

We'll consider Shared Ownership applications up to 90% LTV for new build houses and new build flats.

Builders/registered providers may offer sales incentives to prospective buyers to encourage them to purchase their properties.

Please visit the acceptable incentives section above for further information.

Site exposure levels

Before submitting a new case, please check our site exposure level.

You can do this through Live Chat, emailing newbuild.team@santander.co.uk or calling our New Build Team.