Nationwide and HSBC lower new build property minimum deposit mortgage requirements

by Aaron Strutt

Aug 10 2024

HSBC for Intermediaries and Nationwide for Intermediaries have changed their new-build property mortgage deposit requirements. The move is designed to make it easier for borrowers with smaller deposits to purchase new-build homes.

Nationwide has lowered the deposit borrowers require to purchase a newly built house from 15% to 10%. HSBC for Intermediaries now offers 15% deposit mortgages for newly built flats and 10% deposit mortgages on newly built houses.

Aaron Strutt, product director at Trinity Financial, says: “There is a lot of talk about the plan to build one and a half million new homes within the first five years of a Labour government. Lenders are looking to attract some of this business.

"Most banks and building societies want applicants to have a 10% or 15% deposit for a newly built house, although a few accept a 5% deposit. They often need a deposit between 15% and 25% of the value of the flat."

HSBC's updated new build mortgage property lending policy:

What does HSBC classify as a newly built property?

HSBC defines a new build property as one that will be occupied for the first time and/or has been built and completed within the last 24 months.

HSBC can approve mortgages on properties not yet built subject to satisfactory valuation, although the bank will not release funds until the property has been completed. A re-inspection may be required if the surveyor advises that one is necessary for their original valuation.

The £25,000 minimum deposit the bank required for newly built houses and flats has been removed. Flats impacted by cladding will remain capped, so that borrowers will need a 15% deposit. 

Nationwide new build property lending policy

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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