Money Advice Service

NewBuy lets you buy a new-build home with a deposit of only 5% of the purchase price. Find out more about the government scheme and if you’re eligible to apply.

Are you able to apply?

To apply for this scheme the property you want to buy must be:

  • A new-build – being sold for the first time or for the first time in its current form (for example, a new flat that used to be part of a house)
  • Priced at £500,000 or less
  • Your main home – you can’t use NewBuy to buy a second home or a buy-to-let property
  • Fully owned by you – you can’t use NewBuy for shared ownership or shared equity purchases
  • Built by a builder taking part in the scheme

You don’t have to be a first-time buyer and there’s no limit on your level of income. But you can’t use NewBuy with any other publicly funded mortgage scheme.

How to apply for NewBuy

You can apply for a NewBuy mortgage from an approved lender. The lender will still check that you can afford to repay it, just as they would for any other type of mortgage.

To find developers who’ve signed up to the scheme, go to the NewBuy website.

You could get a mortgage of up to 95% of the purchase price if the lender is happy that you will be able to make the monthly repayments. Make sure you’re able to afford all the costs associated with buying and moving.

How much can you afford to borrow?

Mortgage affordability calculator

Costs of buying

Mortgage payments calculator

Stamp Duty Land Tax calculator

Other schemes

The Help to Buy equity schemes also offer affordable ownership of newly-built properties. See our guides to other government schemes:

Help to Buy and other schemes

Shared ownership schemes

Right to Buy schemes

Home buying schemes in Scotland

Your next step

Applying for a mortgage

This article is provided by the Money Advice Service.