Principality new-build mortgage criteria

Q: Does Principality lend on new-build properties?

Yes. Principality lends up to 95% LTV on new-build houses and 90% on flats — a narrow five-point gap that makes it a solid option for flat purchases. The 95% figure is a first-time-buyer figure; home movers and remortgage cases are capped at 90%, so buyer status matters as much as property type.

Q: Can builder incentives be stacked with other incentives at Principality?

Yes. Principality accepts a builder-gifted deposit up to 5% as part-cover — the buyer still needs a genuine 5% deposit of their own — and that gift can be stacked with a separate, uncapped stamp-duty incentive from the developer, which isn't something every lender allows.

Criteria	Verdict	Detail
New-build max LTV (houses)	Yes	up to 95% LTV
New-build max LTV (flats)	Yes	up to 90% LTV
Builder gifted deposit	Yes	— Builder gift ≤5% (part-cover; 5% own funds still required); can stack with an uncapped stamp-duty incentive
Gifted deposit (family)	Yes	—
Max LTV (standard)	Yes	up to 95% LTV Note: 95% LTV is restricted to first-time buyers; home movers/remortgage cap at 90% LTV. Loan-size tiers also apply on top: 95% <=GBP600k, 90%(75-90% band) <=GBP1m, (65-75% band) <=GBP1.5m, (<65%) <=GBP2m. Recorded 95 as headline (FTB is a normal borrower type, not an excluded scheme per the rules) — judgement call, flagged as medium confidence given the FTB/home-mover split.

Criteria

Verdict

Detail

New-build max LTV (houses)

Yes

up to 95% LTV

New-build max LTV (flats)

Yes

up to 90% LTV

Builder gifted deposit

Yes

—

Builder gift ≤5% (part-cover; 5% own funds still required); can stack with an uncapped stamp-duty incentive

Gifted deposit (family)

Yes

—

Max LTV (standard)

Yes

up to 95% LTV
Note: 95% LTV is restricted to first-time buyers; home movers/remortgage cap at 90% LTV. Loan-size tiers also apply on top: 95% <=GBP600k, 90%(75-90% band) <=GBP1m, (65-75% band) <=GBP1.5m, (<65%) <=GBP2m. Recorded 95 as headline (FTB is a normal borrower type, not an excluded scheme per the rules) — judgement call, flagged as medium confidence given the FTB/home-mover split.

Adviser's view

Principality new-build mortgage criteria at a glance

Max LTV (houses): 95% for first-time buyers; home movers and remortgage cases capped at 90%
Max LTV (flats): 90%
Builder-gifted deposits: accepted up to 5% as part-cover — a genuine 5% buyer deposit is still required
Stamp-duty incentive: a separate, uncapped developer stamp-duty incentive can be stacked with the builder gift

Principality backs new-build houses to 95% and flats to 90%, a narrow five-point gap that makes it a solid option for flat purchases specifically. Worth noting that the 95% figure is a first-time-buyer figure across Principality's lending generally — home movers and remortgage cases are capped at 90%, so it's the buyer's status as much as the property type that determines the ceiling.

Builder-gifted deposits are accepted up to 5% as a part-cover — the buyer still needs to find a genuine 5% deposit of their own — and usefully, that builder gift can be stacked with a separate, uncapped stamp-duty incentive from the developer, which isn't something every lender allows.

Use the table above for the current positions and confirm the FTB/mover distinction with Principality before applying, since it affects the maximum LTV available and is easy to overlook when quoting the headline figure.

FAQ

Does Principality lend on new-build properties?

Yes. Principality lends up to 95% LTV on new-build houses and 90% on flats — a narrow five-point gap that makes it a solid option for flat purchases. The 95% figure is a first-time-buyer figure; home movers and remortgage cases are capped at 90%, so buyer status matters as much as property type.

Can builder incentives be stacked with other incentives at Principality?

Yes. Principality accepts a builder-gifted deposit up to 5% as part-cover — the buyer still needs a genuine 5% deposit of their own — and that gift can be stacked with a separate, uncapped stamp-duty incentive from the developer, which isn't something every lender allows.