Doulton Bridging Finance
New Build Mortgages — Rates

New Build Mortgage Rates 2026 — Best Buys by LTV (Updated August 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. Doulton Bridging Finance.

New build mortgage rates in August 2026 range from 1.87% (Own New Rate Reducer, 80% LTV, Furness BS) to 5.70%+ (95% LTV on new build houses). The Own New Rate Reducer scheme delivers the lowest rates in the new build market — available through DBF via the Own New scheme. For standard new build mortgages, rates are broadly comparable to resale at the same LTV. This page is updated monthly with current best-buy data.

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1.87%
Rate Reducer best buy — Furness BS, 80% LTV, 5% contribution (summer 2026)
4.37%
Standard new build 2-year fix best buy — Halifax, 60% LTV (June 2026)
4.52%
New build house 90% LTV 2-year fix — Halifax (August 2026)
4.75%
New build flat 85% LTV 2-year fix — specialist lenders (August 2026)
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 — RATES

Rate Reducer rates vs standard — August 2026

The Own New Rate Reducer scheme delivers rates significantly below the standard market during the initial fixed period. Furness Building Society currently offers a 2-year fix at 1.87% with 5% developer contribution at 80% LTV (summer 2026). The equivalent standard best buy without Rate Reducer is 4.37% (Halifax, June 2026, 60% LTV). The saving on a £250,000 mortgage: £366/month, or £8,784 over 24 months. DBF works with Own New participating developments.

How new build mortgage rates compare to 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

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): current rates suggest 5-year fixes offer only marginally lower rates than 2-year at the same LTV — DBF compares both options and advises on expected future rate direction before recommending.

New Build Mortgage Rates by LTV — August 2026

LTVProperty typeBest buy rate (2yr fix)Best buy rate (5yr fix)Monthly payment (£250k mortgage)
80% LTV (20% deposit)House — standard4.20% (various)4.15% (various)£1,222 (2yr) / £1,214 (5yr)
80% LTV — Rate ReducerHouse — participating dev1.87% (Furness BS)~2.50% (estimated)£1,022 (2yr — Rate Reducer)
85% LTV (15% deposit)House — standard4.45% (various)4.40% (various)£1,249 (2yr) / £1,242 (5yr)
85% LTVFlat — specialist lenders4.75% (specialist)4.70% (specialist)£1,285 (2yr) / £1,278 (5yr)
90% LTV (10% deposit)House — standard4.52% (Halifax)4.48% (various)£1,399 (2yr) / £1,393 (5yr)
95% LTV (5% deposit via MGS)House — MGS lenders5.20% (Halifax/NW MGS)5.15% (various)£1,484 (2yr) / £1,477 (5yr)
75% LTV (25% deposit)Flat — standard4.10% (various)4.05% (various)£1,208 (2yr) / £1,200 (5yr)
75% LTV (25% deposit)BTL new build (house)4.80% (specialist)4.75% (specialist)£1,000/month interest-only at 4.80%

Worked example

Rate comparison on £280,000 new build house (10% deposit, 90% LTV):

  • Own New Rate Reducer — 5% contribution, 80% LTV (with £56,000 deposit / 20%):
  • Furness BS 1.87% (2yr). Monthly: £1,131. 2-year interest: £27,148.
  • Standard — 90% LTV, no scheme:
  • Halifax 4.52% (2yr). Monthly: £1,463. 2-year interest: £35,100.
  • Standard — 90% LTV, 5-year fix:
  • Various 4.48% (5yr). Monthly: £1,456. 5-year interest: £87,345.
  • Standard — MGS 95% LTV (5% deposit / £14,000):
  • Halifax 5.20%. Monthly: £1,638. 2-year interest: £39,314.
  • Best total cost outcome for this buyer: Rate Reducer (if participating development and 20% deposit available). DBF calculates for your specific purchase.
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 are current new build mortgage rates in August 2026?

Standard 2-year fix: from 4.20% at 80% LTV for houses; from 4.75% at 85% LTV for flats. Own New Rate Reducer: from 1.87% (Furness BS, 80% LTV, 5% developer contribution, summer 2026). 95% LTV via MGS: from 5.20% (Halifax, Nationwide). 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.

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

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

Own New vs Standard Mortgage

Own New Rate Reducer vs standard new build mortgage — side-by-side cost comparison. 1.87% vs 4.37%. Total cost over 5 years. When Rate Reducer wins.

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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