New build properties offer contractors some genuine advantages: a chain-free purchase, predictable completion dates, energy-efficient homes, and access to schemes including shared ownership. The mortgage process for new builds is slightly different from second-hand purchases, and contractors have a few additional considerations that are worth understanding before you start.
The good news is that most contractor-friendly lenders who accept day rate income for standard residential purchases will do the same for new build properties. Lender selection and income assessment remain the key factors.
Shared ownership allows you to buy a share of a property typically between 10% and 75% of its value and pay rent on the remaining share owned by a housing association. You need a smaller deposit and a smaller mortgage than a full purchase, and you can increase your share over time through a process called staircasing.
Shared ownership is available to first time buyers and to those who previously owned a home but cannot currently afford to buy outright. As a contractor, your day rate income is used to assess both your eligibility and the size of the share you can afford.
Buying off-plan means reserving a property before it is built and completing the purchase when construction is finished. For contractors, the key risk is that your contract situation may change between reservation and completion. Most specialist contractor lenders are pragmatic about this what matters is that you hold a current contract at the time of mortgage application and completion.
Most mortgage offers last around six months, but new build properties are often completed later. If the build delays, you may need to reapply — sometimes under different rates or criteria.
New builds are often bought off-plan, meaning completion can take 6–12+ months. This creates a gap between application and completion that doesn’t exist in standard purchases.
As a contractor, your income or contract situation may change before completion. Some lenders may reassess your eligibility at the time of reapplication or completion.
Certain contractor-friendly lenders offer extended offer periods (up to 12 months), reducing the risk of reapplication and providing more stability for off-plan purchases.
Developers often offer incentives on new build properties cashback, upgraded specifications, or contributions to legal fees and stamp duty. These incentives can affect the maximum LTV a lender will offer, because they effectively reduce the net purchase price. Most lenders require incentives to be disclosed and will adjust their LTV calculation accordingly. This is not a reason to avoid incentives just a reason to factor them into your mortgage planning from the outset.
Several government schemes apply specifically to new build properties. The Mortgage Guarantee Scheme supports 95% LTV lending on new builds up to a certain value. Shared ownership new builds are widely available from housing associations across the UK. First Homes a scheme offering a minimum 30% discount to first time buyers on new build properties in England is available from some developers, though availability is limited.
Yes the Mortgage Guarantee Scheme supports 95% LTV lending on eligible new build properties. Contractor income is assessed using day rate annualisation by participating lenders, meaning your deposit requirement is the same as for any other applicant.
Most specialist contractor lenders understand that gaps between contracts are a normal part of contracting. The key is to hold a current contract at the time the mortgage is drawn down. We advise on timing and flag any contract renewal considerations well in advance.
Standard mortgage offers are valid for six months. Many lenders who deal regularly with new build cases will extend to nine or twelve months on request for off-plan purchases where the completion date is further away. We select lenders whose offer validity matches your anticipated completion timeline.
Yes shared ownership is available on new build properties and contractor income is accepted. The share you can buy and the associated mortgage are both sized based on your affordability assessment.
Not inherently. The interest rates available on new build mortgages are broadly comparable to second-hand properties, though the pool of willing lenders at the highest LTV bands can be slightly smaller for new builds. We compare rates across the full market and identify the best value option for your circumstances.