New Build Mortgage Guide

Reviewed 2026-08-19

TSB new-build mortgage criteria

New-build max LTV (houses)

up to 95% LTV

New-build max LTV (flats)

up to 85% LTV

Builder gifted deposit

Yes

CriteriaVerdictDetail
New-build max LTV (houses)Yes
  • up to 95% LTV

Raised from 90% in Feb 2025

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

≤5% of value; nothing above 5% acceptable; 5% own deposit always required

Gifted deposit (family)Yes
Max LTV (standard)Yes
  • up to 95% LTV
  • Note: Loan-size tiers: 95% <=£570k, 90% >£570k-£750k, 85% >£750k-£1m, 75% >=£1m. Headline standard-purchase max is 95%.

Source: lender intermediary criteria, every row verified on or since 2026-07-11 (most recent check 2026-08-19). Criteria change frequently — always confirm current policy with the lender or a broker.

Adviser's view

TSB new-build mortgage criteria at a glance

  • Max LTV (houses): 95% — raised from 90% in February 2025
  • Max LTV (flats): 85%
  • Builder incentives: accepted only up to 5% of the property's value; anything above that is declined, not deducted
  • Buyer's own deposit: a genuine 5% from the buyer's own resources is always required alongside any incentive

TSB raised its new-build house ceiling to 95% in February 2025, having previously capped at 90%, and now sits among the more generous lenders on this measure. Flats remain capped at 85%, the more typical ten-point gap from the house figure.

Its stance on builder incentives is stricter than some: gifts are accepted only up to 5% of the property's value, and TSB won't work with anything above that threshold at all, rather than deducting the excess from the price as several peers do. A genuine 5% deposit from the buyer's own resources is always required alongside any incentive, so the gift can't be treated as covering the whole deposit.

Use the table above for the current positions and confirm the detail with TSB before applying, particularly if the incentive package is anywhere near that 5% cap, since there's no partial allowance once it's exceeded.

FAQ

Does TSB lend on new-build properties?

Yes. TSB lends up to 95% LTV on new-build houses — a ceiling raised from 90% in February 2025 — and 85% on flats, the more typical ten-point gap. Builder incentives are accepted only up to 5% of the property's value, with a genuine 5% buyer deposit always required.

What is TSB's builder incentive cap on new builds?

TSB accepts builder gifts only up to 5% of the property's value and won't work with anything above that threshold at all, rather than deducting the excess from the price as several peers do. A genuine 5% deposit from the buyer's own resources is always required alongside any incentive.

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