New Build Mortgage Rates 2026 — Updated October 2026
- best 2yr fix (Danske Bank, £1,124 fee) — new build and resale
- 4.69%best 2yr fix (Danske Bank, £1,124 fee) — new build and resale
- best 5yr fix (Halifax, £1,099, 60% LTV)
- 4.86%best 5yr fix (Halifax, £1,099, 60% LTV)
- Own New Rate Reducer (Furness BS, 80% LTV, 5% contribution)
- 1.87%Own New Rate Reducer (Furness BS, 80% LTV, 5% contribution)
- BoE base rate (held 17 Sep 2026)
- 3.75%BoE base rate (held 17 Sep 2026)
New build mortgage rates in October 2026 start from 4.69% on a standard 2-year fix and 4.86% on a 5-year fix at 60% LTV. The same lenders price new build and resale, so rates are broadly comparable at the same LTV; the differences are lower LTV caps on new build, particularly for flats, and the Own New Rate Reducer scheme, which delivers the lowest rates in the new build market — from 1.87% (Furness BS, 80% LTV, 5% developer contribution).
New Build Mortgage Rates — October 2026
Swipe the table sideways to see every column.
| Product | LTV | Best rate (indicative) | Notes |
|---|---|---|---|
| Standard 2-year fix | 60% | from 4.69% (Danske Bank, £1,124) | Same lenders price new build and resale |
| Standard 5-year fix | 60% | from 4.86% (Halifax, £1,099) | Payment certainty through the first years in a new home |
| 2-year tracker | 60% | from 3.99% (Barclays, £1,104) | Rises with any base-rate increase |
| 2-year fix, houses | 90% | from 4.77% (Danske Bank, £1,124) | New build may be 0.05%–0.15% above resale at some lenders |
| Own New Rate Reducer, 2-year fix | 80% | 1.87% (Furness BS) | 5% developer contribution; participating developments only |
| New build flats | Lower caps than houses | Priced case by case | Specialist lenders; LTV options narrower than for houses |
What moves new build mortgage rates
Rate Reducer vs standard
The Own New Rate Reducer scheme delivers rates significantly below the standard market during the initial fixed period. Furness Building Society offers a 2-year fix at 1.87% with a 5% developer contribution at 80% LTV. The equivalent standard best buy without Rate Reducer is 4.69% (2-year fix, October 2026). The saving on a £250,000 mortgage: £373/month, or £8,947 over 24 months. DBF works with Own New participating developments.
New build vs resale
At the same LTV, new build and resale mortgage rates are broadly similar — the same lenders price both. The difference is that LTV options differ (new build caps lower, particularly for flats), and the Rate Reducer scheme is only available on new build. At 90% LTV, new build rates may be 0.05%–0.15% higher than resale equivalents at some lenders — the "new build premium" reflecting the lender's slightly higher risk assessment on a new build property.
5-year fix vs 2-year fix
For new build on a Rate Reducer development, a 2-year fix aligns with the typical Rate Reducer period and allows a remortgage when the subsidy ends. A 5-year Rate Reducer is available from some lenders where the developer offers a 5% contribution over a longer term. For standard new build (no Rate Reducer), DBF compares both options before recommending.
What a new build mortgage costs: worked example
- Monthly payment
- £1,044
- 2-year interest
- £9,065
- Monthly payment
- £1,417
- 2-year interest
- £22,962
- Rate Reducer saving over 24 months
- £8,947 in payments
£250,000 new build mortgage over 25 years, first 24 months compared.
Own New Rate Reducer — 1.87% (2yr, 80% LTV)
Standard 2-year fix — 4.69%
Rate Reducer is only available on participating developments. DBF calculates the total cost for your specific purchase.
Rates rose in September — lock in today, review before completion
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Mortgage
- About
- New Build Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
The Bank of England held Bank Rate at 3.75% on 17 September 2026, its sixth consecutive hold, but three of nine MPC members voted to raise it to 4.0%. The Committee warned policy may have to tighten if the Middle East conflict persists.
Fixed rates are priced from swap rates, and the 2-year swap rose from 4.26% on 3 September to above 4.70% by mid-month, so most major lenders repriced fixed rates upward two or three times in September. The next decision is on 5 November. If your deal ends in the next six months, securing a rate now and reviewing it before completion is the lower-risk approach.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
What are current new build mortgage rates in October 2026?
Standard 2-year fix from 4.69% and 5-year fix from 4.86% at 60% LTV; 90% LTV 2-year fix from 4.77%. Own New Rate Reducer: from 1.87% (Furness BS, 80% LTV, 5% developer contribution). All rates subject to change.
Are new build mortgage rates higher than resale?
At the same LTV, rates are broadly similar. At very high LTV (90%–95%), new build rates may be marginally higher — typically 0.05%–0.15%. The Own New Rate Reducer scheme on participating new builds delivers rates significantly below the resale market.
How often are new build mortgage rates updated?
This page is updated monthly. Mortgage rates change regularly in response to swap rate movements and lender policy changes. DBF confirms current rates at the time of your application — the rates here are a guide, not a guarantee.
Can I lock in a rate on a new build before it completes?
Yes — you can apply for a mortgage offer before the new build completes. Most lenders allow rates to be locked in for 6 months. Specialist lenders extend to 9–12 months for off-plan. DBF identifies the right lender for your build timeline.
How much can I borrow?
Usually 4 to 4.5 times income, with some lenders going to 5 or 5.5 times for higher earners and certain professions, subject to affordability.
How long does a mortgage take?
A mortgage in principle takes minutes to a day; a full offer usually takes 2–4 weeks from application.
Is a lower rate with a high fee better than a no-fee deal?
It depends on the loan size. On smaller loans the no-fee deal often wins; we compare the total cost over the fixed period.
How early can I remortgage?
You can secure a new deal up to six months before your current one ends.
What documents will I need?
ID, proof of address, 3 months' payslips and bank statements, or 2 years' accounts or tax calculations if self-employed.
Where this applies
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533