Published 2026-07-10 · New Build Mortgage Guide · Written and reviewed by Phillip Wakeling-Smith (CeMAP)
New-build LTV caps: why flats are harder to buy than houses
Quick answer: Most lenders will lend a smaller percentage of the price on a new build than on an older property — and less again on a new-build flat than a new-build house. In practice houses commonly reach 90–95% loan-to-value while flats are often capped meaningfully lower, which can mean finding roughly twice the deposit for a flat at the same price.
Why the caps exist
New builds carry a price premium — you're paying for "never lived in", the way you pay extra for a car with delivery mileage. If you resell in the first couple of years, the premium is gone and early price falls hit the lender's security first. Lenders manage that risk by lending a lower percentage on day one.
Flats get capped harder than houses for stacking reasons: developments release many identical units at once, so one distressed sale reprices the whole block; service charges and (on some older schemes) cladding history add further caution.
What this means in pounds
On a £300,000 property:
- A lender at 95% LTV needs a £15,000 deposit.
- The same lender capping new-build flats at 85% needs £45,000.
- At a 75% flat cap, it's £75,000.
Same price, same buyer, same lender — three very different front doors. This is why the first question on any new-build purchase is "what does my lender cap this property type at?", before rates are even worth discussing.
The caps vary more than people expect
There is no industry-standard cap. Among the lenders we track, new-build house limits cluster at 90–95%, while flat policies range from matching the house limit all the way down to caps that effectively demand a quarter of the price as deposit. Some lenders also distinguish new-build flats from converted flats, or apply different rules above certain storey heights.
Our lender criteria tables show the current new-build positions for the lenders we track, each with a verified date — worth checking before you reserve, because a plot that works with one lender's caps can be unbuyable with another's.
Ways buyers bridge the gap
- Builder deposit contributions — up to ~5% of the price from the developer; see our full guide, including the one route where the builder's 5% can be the entire deposit on a house.
- Low-deposit routes beyond 95% — 100% options like Skipton's Track Record, and rate-reducer products where the builder's incentive buys the rate down — every 5%-and-under route in 2026.
- Choosing houses over flats — blunt, but the LTV maths above is often the deciding factor between plot types on the same development.
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.