Published 2026-07-10 · New Build Mortgage Guide · Written and reviewed by Phillip Wakeling-Smith (CeMAP)

Builder deposit contributions: can the developer pay your deposit?

Quick answer: Yes — most lenders will accept a deposit contribution from the builder, typically capped at around 5% of the purchase price. Usually it has to sit alongside some deposit of your own. But one lender's criteria go further: with Perenna, a 5% builder gift can be the entire deposit on a new-build house, meaning a qualifying buyer puts down nothing themselves.

What a builder deposit contribution actually is

When a developer wants to move stock, it can offer incentives: paid legal fees, upgraded kitchens, stamp duty contributions — or cash towards your deposit. A deposit contribution is the most valuable of these, because it directly reduces the money you need on completion day.

It is not a discount on the price. The property still completes at the full price; the builder's money simply forms part of the deposit funds at exchange.

The rules every lender applies

• The ~5% cap. Lenders generally limit builder incentives to about 5% of the price or valuation. Contributions above the cap usually get deducted from the purchase price for lending purposes instead — which shrinks your mortgage rather than your deposit.
• Full disclosure is mandatory. Every incentive must be declared on the UK Finance Disclosure of Incentives Form, which the builder completes and the valuer and lender see. Undeclared incentives are treated as mortgage fraud — there is no informal version of this arrangement.
• The valuation rules the numbers. Contributions are measured against the lower of price and valuation. If the valuer marks the property down, the sums are redone from the lower figure.

Which lenders accept builder gifted deposits

Of the lenders whose new-build criteria we track, roughly eight in ten accept a builder deposit contribution, at least one considers it case-by-case, and a minority refuse outright — including some big names, which surprises buyers. Whether the gift can be your whole deposit is a separate question: most acceptors still want to see some of your own money in the purchase.

Our lender criteria tables show the current position for each lender we track, with the date each was verified.

The zero-deposit combination

Perenna's criteria allow a builder incentive of up to 5% to be used "as part or all of the deposit, including where no borrower-funded deposit is provided" — and its 95% loan-to-value range covers new-build houses (flats are capped at 80%). Put those together on a house where the builder offers 5%:

• Builder's contribution: 5%
• Perenna mortgage: 95%
• Your deposit: £0

You still pay legal fees, moving costs and any stamp duty. Affordability still has to work — Perenna's long-term fixed-rate model helps here, because there's no stress-rate uplift on top of the pay rate — and the product is a decades-long fix, which suits some buyers and not others.

One more thing worth knowing: Perenna applies this to foreign nationals on Skilled Worker–class visas too (£50k+ main-applicant income, 18 months in the UK, 12+ months left on the visa). If that's you — or your buyers — our sister site covers the visa angle in detail: Visa Mortgage Guide.

Before you rely on a builder's contribution

1. Get it in writing early — the contribution belongs in the reservation paperwork, not a sales-office conversation.
2. Ask how it's structured — deposit contribution, price reduction and paid extras are treated differently by lenders.
3. Model a down-valuation — if the valuer comes in 3% light, does your purchase still work? See our guide to new-build down-valuations.
4. Check your lender's position first — a contribution your lender won't accept is worth nothing. The criteria tables are the place to start.

Criteria positions verified July 2026 and change frequently — always confirm the current policy with the lender or a whole-of-market broker. This article is information, not financial advice.