Doulton Bridging Finance
New Build Mortgages — Flats

New Build Flat Mortgages 2026 — LTV Limits, EWS1, and Service Charges Explained

New build flat mortgage 2026 — 75%–85% LTV, EWS1 for buildings over 11m, service charge affordability impact. Specialist flat lenders. Doulton Bridging Finance.

New build flats are subject to more restrictive mortgage criteria than new build houses. Most lenders cap LTV at 75%–85% (requiring 15%–25% deposit), EWS1 certification is required for buildings over 11 metres, and service charges must be factored into the lender's affordability assessment. Understanding these constraints before choosing a flat — and identifying lenders who are most flexible within them — is where a specialist broker delivers real value.

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75%–85%
Typical max LTV for new build flat (vs 95% for new build house via MGS)
11 metres
Height threshold triggering EWS1 requirement for most lenders
Service charge
Must be included in affordability assessment — reduces maximum loan
15%–25%
Minimum deposit for most new build flat purchases
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 — FLATS

EWS1 — what it is and when you need it

EWS1 (External Wall System assessment form EWS1) is a certification document confirming that a building's external wall construction is safe. Following the Grenfell fire and subsequent building safety legislation, most lenders require EWS1 before they will lend on flats in buildings over 11 metres high. For new build flats, the developer is responsible for providing EWS1. DBF confirms EWS1 status for your specific development before application — a missing or delayed EWS1 can block the transaction.

Service charges and mortgage affordability

New build flats carry annual service charges covering building maintenance, management, and communal facilities. Typical service charges on new build apartments range from £1,500–£6,000+ per year depending on location, building size, and specification. Lenders include the annual service charge as a monthly committed expenditure in their affordability assessment — effectively reducing the maximum mortgage available. A £3,000/year service charge (£250/month) reduces the maximum loan by approximately £35,000–£50,000 depending on the lender's income multiple. DBF factors the service charge into every new build flat mortgage calculation.

Leasehold terms

New build flats are virtually always leasehold. Most lenders require a minimum remaining lease term of 70–85 years at the end of the mortgage term. For a 25-year mortgage, a new build flat with 999-year or 250-year lease has no issue. Shorter leases (under 125 years at start) on older new builds may affect lender appetite. DBF confirms leasehold terms as part of the new build flat mortgage assessment.

LTV limits by building height and EWS1

Under 11 metres (typically 4 storeys or fewer): EWS1 not required by most lenders. Higher LTV may be available. Over 11 metres without EWS1: most mainstream lenders will not proceed. Specialist lenders with more flexible positions identified by DBF. Over 11 metres with EWS1: standard new build flat criteria apply (75%–85% LTV depending on lender).

New Build Flat LTV by Lender Type August 2026

LenderMax LTV (new build flat)EWS1 requirementNotes
Halifax85% LTVRequired for buildings over 11mStrong new build flat appetite at 85%. Popular choice.
Barclays85% LTVRequired for buildings over 11mGood for higher LTV flat cases. Rate competitive.
Nationwide85% LTVRequired for buildings over 11mMGS participant. Good new build flat range.
HSBC75% LTVRequired for buildings over 11mMore conservative. Strong pricing at 75%.
Santander75% LTVRequired for buildings over 11mConservative on flats. Good pricing at lower LTV.
Specialist lenders (via DBF)75%–80%More flexible — some consider without EWS1Best option where EWS1 is pending or unavailable

Worked example

New build apartment, 8th floor, 24-storey building, Manchester city centre. £295,000. EWS1 confirmed.

  • Service charge: £3,200/year (£267/month).
  • 15% deposit: £44,250. Mortgage: £250,750.
  • Affordability: Buyer income £55,000. Less service charge (£3,200/year) and ground rent (£250/year): commitment £3,450/year.
  • Lender assessment: income £55,000 less £3,450 annual commitments. Net: £51,550.
  • 4.5x: £231,975. Below £250,750 required. Need joint income or larger deposit.
  • Solution: Partner income added. Combined: £85,000. Less £3,450 commitments. Net: £81,550.
  • 4.5x: £366,975. £250,750 mortgage achievable. Halifax 85% LTV. Rate: 4.75% (2yr fix).
  • Monthly: £1,399. Service charge: £267. Total monthly: £1,666.
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 new build flat?

15% (85% LTV) is the minimum for the most flexible lenders (Halifax, Barclays, Nationwide). Some lenders cap at 25% (75% LTV) for new build flats. EWS1 status of the building significantly affects which lenders will proceed.

Do I need EWS1 for a new build flat?

If the building is over 11 metres high, most lenders require EWS1. For new build flats, the developer should provide EWS1 as part of the purchase. DBF confirms EWS1 status before application and identifies flexible lenders where EWS1 is delayed.

How do service charges affect my mortgage?

Lenders treat service charges as a monthly committed expenditure — reducing your maximum borrowing capacity. A £3,000/year service charge reduces the maximum loan by approximately £35,000–£50,000. Always factor in the service charge when calculating how much you can borrow on a new build flat.

Can I use the Mortgage Guarantee Scheme on a new build flat?

In principle yes, but in practice most MGS lenders cap flat LTV at 85% regardless of MGS. The 95% LTV MGS route is primarily effective for houses. For flats, a minimum 15% deposit is the realistic starting point.

Are new build flats a good investment?

New build flats carry a price premium over equivalent resale flats. In some markets (particularly city centres with oversupply), new build flats can lose value in the short term after purchase. In undersupplied markets, they perform better. DBF advises on the mortgage — for investment advice on new build flat returns, an independent financial adviser should be consulted.

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.

EWS1 Guide

EWS1 guide 2026 — what EWS1 is, when it is required for a new build flat mortgage, which lenders need it, what to do if it is not available.

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.

New Build Mortgage Rates 2026

New build mortgage rates 2026 — best buys by LTV for houses and flats. Own New Rate Reducer comparison. Monthly payment examples. Updated August 2026.

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