Doulton Bridging Finance
New Build Mortgages — First-Time Buyers

New Build Mortgage for First-Time Buyers 2026 — 5% Deposit Routes, Schemes, and Stamp Duty Relief

New build mortgage for first-time buyers 2026 — 5% deposit routes, stamp duty relief, Own New Rate Reducer, LISA bonus. Approved Own New broker. Doulton Bridging Finance.

First-time buyers have more routes into a new build mortgage in 2026 than at any point since Help to Buy. The Mortgage Guarantee Scheme (permanent from July 2025) provides 95% LTV on new build houses up to £600,000. Own New Rate Reducer — available through DBF via the Own New scheme.87% on participating developments. Stamp duty relief (up to £8,750 saving on properties up to £500,000 from April 2025 thresholds) reduces the upfront cost further. And a Lifetime ISA adds a government bonus of up to £1,000 per year to your deposit. For the right property on the right development, these advantages combine to make new build the most financially accessible route for a first-time buyer in 2026.

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5%
Minimum deposit for new build house (MGS or Rate Reducer route)
1.87%
Own New Rate Reducer example rate (Furness BS, 80% LTV, summer 2026)
£8,750
Maximum stamp duty saving for FTBs on sub-£500k properties (April 2025 thresholds)
£1,000/yr
Maximum LISA government bonus per year toward FTB deposit
Current rates · Updated August 2026Residential Mortgage Rates 2026UK residential mortgage rates in 2026 range from 4.33% for the best 2-year fix (Danske Bank, 60% LTV, August 2026) to above 6% for high-LTV or complex income cases.
View the rate guide
NEW BUILD MORTGAGES — FIRST-TIME BUYERS

Stamp duty relief for first-time buyers (April 2025 thresholds)

From April 2025, first-time buyers pay no stamp duty on properties up to £300,000, and 5% on the portion between £300,001 and £500,000. Above £500,000, FTB relief does not apply and standard rates are charged from £0. On a £285,000 new build house: zero stamp duty (saving £2,850 vs a non-FTB). On a £450,000 new build house: £7,500 stamp duty (FTB rate) vs £10,000 (standard rate) — saving £2,500. Maximum saving: £8,750 on a property at exactly £500,000.

EPC A — the new build energy advantage

New build properties are required to meet high energy efficiency standards — most achieve EPC A or B ratings. For a first-time buyer, this means significantly lower energy bills than an older property. A 2025 study by Halifax found that EPC A homes cost an average of £1,800/year less in energy bills than EPC D properties. Over a 5-year fixed rate period, this represents £9,000 in energy savings alongside the mortgage. This is a genuine financial benefit of buying new build that is rarely factored into the cost comparison with resale.

Lifetime ISA (LISA) — the government deposit boost

First-time buyers aged 18–49 can save up to £4,000/year in a LISA and receive a 25% government bonus (maximum £1,000/year). At purchase, the accumulated bonus is added to the deposit. A buyer who has saved £12,000 in a LISA over 3 years receives £3,000 in government bonuses — effectively free deposit money. The property must be the first home, priced below £450,000. LISA cannot be combined with Shared Ownership staircasing. The LISA replacement product (new First Time Buyer ISA, from April 2028) will remove the 25% withdrawal penalty.

Own New Rate Reducer — DBF's FTB advantage

DBF works with Own New participating developments. For FTBs on participating developments (160+ builders), the Rate Reducer scheme can deliver a 2-year fix at 1.87% (Furness BS, summer 2026, 80% LTV) compared with 4.37% standard best buy. On a £256,500 mortgage, that is a monthly saving of £366 — or £8,784 over the initial 2-year period. Rate Reducer cannot be combined with MGS, Shared Ownership, or First Homes — DBF calculates which route saves more for your specific purchase.

First-Time Buyer New Build Routes — August 2026

RouteMin depositSchemes availableBest for
Mortgage Guarantee Scheme (house)5% (£14,250 on £285,000)MGS + LISA combination availableFTBs buying houses up to £600,000. Widest lender choice.
Own New Rate Reducer (house or flat on participating development)5%–10% (developer/lender dependent)Rate Reducer only — cannot combine with MGS or shared ownershipFTBs on participating developments wanting lowest possible rate.
Shared Ownership (new build)5% of share purchasedCannot combine with Rate Reducer or First HomesFTBs who cannot afford full purchase. Income cap £80,000/£90,000 London.
First Homes5% of discounted priceCannot combine with Rate Reducer or shared ownershipFTBs with local connection or key worker status. Very limited availability.
Standard (no scheme, 10% deposit)10% (£28,500 on £285,000)LISA bonus applies to depositFTBs without access to above schemes or buying a new build flat.
Standard (no scheme, 15%+ deposit)15%+LISA bonus applies. Better rates than 10% deposit.FTBs with larger deposits. Lower rates, more lender choice.

Worked example

First-time buyer couple. New build house £285,000. Participating development (Rate Reducer eligible).

  • LISA savings: £8,000 (2 years × £4,000) + £2,000 bonus = £10,000 deposit contribution.
  • Additional savings: £18,500. Total deposit: £28,500 (10% — 90% LTV).
  • Route 1 — Own New Rate Reducer: 1.87% (2-year fix, Furness BS). Monthly: £1,112.
  • Route 2 — Standard 90% LTV: 4.52% (Halifax). Monthly: £1,421.
  • Monthly saving via Rate Reducer: £309. Over 2 years: £7,416.
  • Stamp duty: £0 (FTB, below £300,000 threshold). Total upfront: deposit + legal fees only.
The Process

How it works

01

Tell us about your purchase

Share the property details, development, scheme type (Rate Reducer, MGS, shared ownership), and your deposit. We assess your situation same working day.

02

Lender search and scheme check

We identify which lenders accept your income type, development, and property classification — including Rate Reducer and MGS eligibility where relevant.

03

Application and valuation

We manage the full application, coordinate the RICS valuation, and liaise with the developer on build schedule and offer validity.

04

Mortgage offer and completion

Once the offer is issued, we monitor build progress, manage any extensions needed for off-plan delays, and coordinate completion.

FAQs

Frequently asked questions

What is the minimum deposit for a first-time buyer new build?

5% on houses via the Mortgage Guarantee Scheme (MGS) or Own New Rate Reducer on participating developments. For new build flats, minimum deposit is typically 15%–25% depending on the lender. DBF assesses your specific property and recommends the lowest-deposit route available.

Can a first-time buyer use Own New Rate Reducer?

Yes — Rate Reducer is available to first-time buyers and home movers on participating developments. DBF works with Own New participating developments. It cannot be combined with Shared Ownership, First Homes, or MGS — DBF compares all routes to identify the best total cost.

How much stamp duty does a first-time buyer pay on a new build?

From April 2025: zero stamp duty on properties up to £300,000. 5% on the portion between £300,001 and £500,000. Above £500,000, FTB relief does not apply. On a £285,000 new build: £0 SDLT. On a £450,000 new build: £7,500 SDLT (saving £2,500 vs standard rates).

Can I use a Lifetime ISA (LISA) toward a new build mortgage?

Yes — LISA savings plus the government bonus (25% on up to £4,000/year) can be used as a deposit on a first home priced below £450,000. LISA can be combined with MGS. It cannot be combined with Shared Ownership staircasing. DBF advises on LISA eligibility and combination with other schemes.

Is it easier to get a new build mortgage as a first-time buyer?

The scheme availability (MGS, Rate Reducer, LISA) makes new build more accessible in terms of deposit requirement. However, lender criteria on income, credit, and the property itself are the same as for any mortgage. New build-specific criteria (LTV limits on flats, offer validity for off-plan) apply regardless of buyer type.

What is the difference between new build houses and flats for FTBs?

Houses: up to 95% LTV via MGS. Flats: typically 75%–85% LTV maximum — meaning a minimum 15%–25% deposit. EWS1 may be required for flats in buildings over 11 metres. Service charges add to monthly costs and must be accounted for in lender affordability assessment. DBF advises FTBs on which property type gives the most favourable mortgage terms for their deposit size.

Related finance

Explore related pages

New Build Mortgages Hub

New build mortgages 2026 — specialist whole-of-market broker. Lower LTV, scheme expertise, off-plan offer validity, Own New Rate Reducer.

Own New Rate Reducer Explained

Own New Rate Reducer 2026 — mortgage rates from 1.87% on new build properties. DBF works with Own New participating developments. Compare Rate…

Mortgage Guarantee Scheme

Mortgage Guarantee Scheme for new builds 2026 — permanent from July 2025, 95% LTV, up to £600,000. Which lenders? How to apply.

How Much Deposit for a New Build?

How much deposit for a new build mortgage 2026 — houses vs flats, 5% routes, incentive impact, LISA boost, worked examples at £250k, £350k, £500k.

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