New Build Mortgage Rates September 2026 — Standard, Rate Reducer, and MGS Compared
- Rate Reducer best buy — Furness BS, 80% LTV, 5% contribution (summer 2026)
- 1.87%Rate Reducer best buy — Furness BS, 80% LTV, 5% contribution (summer 2026)
- Standard new build best buy 2yr fix — approx 80% LTV (Sept 2026)
- 4.32%Standard new build best buy 2yr fix — approx 80% LTV (Sept 2026)
- MGS 95% LTV 2yr fix — Halifax/Nationwide (Sept 2026)
- 5.20%MGS 95% LTV 2yr fix — Halifax/Nationwide (Sept 2026)
- Housebuilders participating in Own New scheme
- 160+Housebuilders participating in Own New scheme
New build mortgage rates in September 2026 range from 1.87% (Own New Rate Reducer, Furness Building Society, 80% LTV, 5% developer contribution — summer 2026) to 5.40%+ for 95% LTV via the Mortgage Guarantee Scheme. The standard best buy 2-year fix for a new build house without a scheme is approximately 4.32%–4.52% at 80%–90% LTV. The Own New Rate Reducer scheme significantly undercuts the standard market during the initial fixed period by routing a developer contribution of 3%–5% of the purchase price through the lender as a rate subsidy. DBF works with Own New participating developments to access Rate Reducer for buyers.
New Build Mortgage Rates by Route — September 2026
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| Route | Min deposit | Best 2yr fix | Best 5yr fix | Monthly (£256,500 mortgage) | Notes |
|---|---|---|---|---|---|
| Rate Reducer — 5% contribution, 80% LTV | 20% | 1.87% (Furness BS) | ~2.50% est. | £1,055 | Developer contributes 5% to lender. DBF accesses Rate Reducer on participating developments. |
| Rate Reducer — 3% contribution, 85% LTV | 15% | ~2.70% est. | ~3.10% est. | ~£1,175 | Smaller contribution = smaller rate saving. 3% deals less impactful than 5%. |
| Standard new build house, 80% LTV | 20% | ~4.32% (various) | ~4.15% (various) | ~£1,253 | No scheme. Mainstream lenders. Halifax, Nationwide, Barclays. |
| Standard new build house, 90% LTV | 10% | ~4.52% (Halifax) | ~4.40% (various) | ~£1,399 | No scheme. Most common FTB route without Rate Reducer. |
| MGS — 95% LTV | 5% | ~5.20% (Halifax, NW) | ~5.10% (various) | ~£1,484 | Permanent from July 2025. Houses up to £600,000. Government guarantees >80% LTV. |
| New build flat — 85% LTV | 15% | ~4.75% (specialist) | ~4.65% (specialist) | ~£1,401 | EWS1 required for buildings >11m. Lower LTV cap than houses. |
| New build flat — 75% LTV | 25% | ~4.10% (various) | ~3.95% (various) | ~£1,248 | Wider lender panel at 75%. Better rates. |
What determines your rate
Rate Reducer — how it works and what it saves
Own New Rate Reducer routes the developer's contribution (3% or 5% of the purchase price) through the mortgage lender as a rate subsidy during the initial fixed period. The contribution goes directly to the lender — not to the buyer. On a £285,000 house with a 5% Rate Reducer contribution and a Furness Building Society 2-year fix at 1.87% (summer 2026), the saving versus standard 90% LTV is approximately £523/month — or £12,552 over 24 months. At the end of the Rate Reducer period, DBF remortgages to the best available deal.
Developer incentive threshold — the 5% rule
All developer incentives (cashback, paid SDLT, furniture, Rate Reducer contribution) must be disclosed to the lender. Incentives above 5% of the purchase price cause the lender to reduce the property value used for LTV — effectively increasing the deposit required. A 5% Rate Reducer contribution sits exactly at the threshold. DBF models the incentive impact before every new build application and ensures complete disclosure.
Off-plan offer validity — the key new build complexity
Standard mortgage offers last 6 months. Off-plan builds typically take 9–18 months from reservation to completion. DBF identifies lenders with 9–12 month initial validity for off-plan purchases — preventing the situation where the offer expires before the property completes, forcing a reapplication at prevailing rates. For Rate Reducer cases, DBF also monitors the build schedule and manages any extension requests.
New build flat rates vs houses
New build flats are subject to lower LTV limits than houses at most lenders — typically 75%–85% maximum versus 90%–95% for houses. EWS1 certification is required for buildings above 11 metres. Service charges (typically £1,500–£6,000+/year) must be factored into the lender's affordability assessment, reducing the maximum loan. DBF advises on which lender offers the highest LTV for specific new build flat developments.
Worked cost example
- Stamp duty (FTB, below £300k threshold)
- £0
- Stamp duty
- £0
- Rate Reducer saving over 24 months
- £8,584
First-time buyer. New build house £285,000. Participating development (5% Rate Reducer available).
LISA savings: £12,000 (3 years × £4,000) + £3,000 bonus = £15,000. Additional savings: £13,500. Total deposit: £28,500 (10%).
Route A — Rate Reducer (Furness BS, 2yr fix at 1.87%, 90% LTV)
Mortgage: £256,500. Monthly: £1,055. 2yr interest: £24,944.
Route B — Standard 90% LTV (Halifax, 2yr fix at 4.52%)
Mortgage: £256,500. Monthly: £1,399. 2yr interest: £33,528.
At month 20: DBF initiates remortgage review. Rate Reducer advantage locked in.
Note: Rate Reducer 5% contribution = £14,250 — goes to lender, not to buyer. Buyer's deposit remains £28,500.
Rate context and outlook
Own New Rate Reducer has grown significantly since launch. Over 160 housebuilders now participate. The participating lender panel includes Halifax, Virgin Money, Gen H, Furness Building Society, Perenna, Kensington Mortgages, Leek Building Society, and Darlington Building Society. DBF works with participating developments to access Rate Reducer. Rate Reducer cannot be combined with the Mortgage Guarantee Scheme, Shared Ownership, or First Homes.
Frequently asked questions
What are current new build mortgage rates in September 2026?
Standard 2-year fix: from ~4.32% at 80% LTV for houses; ~4.75% at 85% LTV for flats. Own New Rate Reducer: from 1.87% (Furness BS, 80% LTV, 5% developer contribution, summer 2026). MGS 95% LTV: ~5.20% (Halifax, Nationwide). All rates subject to change.
Is Own New Rate Reducer available on all new build developments?
Only on participating developments. Over 160 housebuilders participate as of September 2026, including Barratt Redrow, Vistry Group, Taylor Wimpey, and many regional developers. DBF confirms Rate Reducer availability for your specific development before application.
How much does Rate Reducer save?
On a £256,500 mortgage: Rate Reducer at 1.87% saves approximately £344/month versus standard 90% LTV at 4.52% (£1,055 vs £1,399/month). Over the 2-year initial period: approximately £8,256–£12,000 depending on contribution level and lender.
What happens to my rate when Rate Reducer ends?
Your mortgage reverts to the lender's standard variable rate — typically 6%–8%, significantly higher than the Rate Reducer rate. DBF contacts you approximately 4 months before the Rate Reducer period ends to initiate a remortgage to the best available deal at that time. You will not accidentally end up on the SVR if you work with DBF.
Can I use the Mortgage Guarantee Scheme on a new build flat?
In principle yes, but in practice most MGS lenders cap new build flat LTV at 85% regardless of MGS — meaning the minimum deposit for a new build flat is 15%, not 5%. The 95% LTV MGS route is primarily effective for new build houses valued up to £600,000.
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533