New Build Mortgage Guide

Reviewed 2026-08-19

HSBC new-build mortgage criteria

New-build max LTV (houses)

up to 90% LTV

New-build max LTV (flats)

up to 85% LTV

Builder gifted deposit

Yes

CriteriaVerdictDetail
New-build max LTV (houses)Yes
  • up to 90% LTV
New-build max LTV (flats)Yes
  • up to 85% LTV
Builder gifted depositYes

Developer gift up to 5% without affecting value; part-exchange counts as the full 5%

Gifted deposit (family)Yes
Max LTV (standard)Yes
  • up to 95% LTV
  • Note: loan-size tiers: 95%<=GBP570k, 90%<=GBP750k, 85%<=GBP2m (GBP1m for flats), 75%<=GBP3m, 70% for lending over GBP3m. Headline standard-purchase max is 95%.

Source: lender intermediary criteria, every row verified on or since 2026-07-10 (most recent check 2026-08-19). Criteria change frequently — always confirm current policy with the lender or a broker.

Adviser's view

HSBC new-build mortgage criteria at a glance

  • Max LTV (houses): 90%
  • Max LTV (flats): 85%
  • Builder incentives: a developer gift of up to 5% is accepted without reducing the property's value for lending
  • Part-exchange: treated as using the full 5% allowance — can't be stacked with an additional cash incentive

HSBC sits a notch below the most generous high-street names on new-build LTV, capping houses at 90% and flats at 85% — a five-point gap that's fairly typical, but it means clients hoping for a 95% deal on a new-build house will need to look elsewhere.

Where HSBC is clear and useful is on incentives: a developer gift of up to 5% is accepted without reducing the property's value for lending purposes, which keeps the achievable loan amount intact. Part-exchange arrangements are treated as using up the full 5% allowance in one go, so there's no room to stack a part-exchange with an additional cash incentive — worth explaining to clients weighing up a developer's part-exchange offer against a straight sale.

The table above carries the current positions; confirm with HSBC before applying, particularly how any part-exchange arrangement is being treated alongside the rest of the deposit.

FAQ

Does HSBC lend on new-build properties?

Yes. HSBC lends up to 90% LTV on new-build houses and 85% on flats — a notch below the most generous high-street names, so clients hoping for a 95% deal on a new-build house will need to look elsewhere. A developer gift of up to 5% is accepted without reducing the property's value for lending.

How does HSBC treat part-exchange on new builds?

HSBC treats a part-exchange arrangement as using up its full 5% incentive allowance in one go, so there's no room to stack a part-exchange with an additional cash incentive — worth weighing when a client is comparing a developer's part-exchange offer against a straight sale.

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