Saving for a deposit remains one of the biggest hurdles for first-time buyers. The good news is that several schemes and products now make it possible to buy a new build home with just a 5% deposit.
How Does It Work?
Several major lenders now offer 95% loan-to-value (LTV) mortgages specifically for new build properties. Combined with government-backed schemes and developer incentives, it is possible to get on the property ladder with a deposit of just 5% of the purchase price.
Options Available
95% LTV Mortgages: Available from several high street lenders for new build purchases. Help to Buy Equity Loan: Government loan of up to 20%, meaning you only need a 5% deposit. Shared Ownership: Buy a share (25-75%) and pay rent on the rest, reducing the deposit needed. Developer Incentives: Many builders offer deposit contributions, stamp duty payments, or furnished packages.
Things to Consider
While a 5% deposit gets you on the ladder, there are trade-offs. Higher LTV mortgages typically come with higher interest rates, and you will have less equity buffer if prices dip. It is important to get independent mortgage advice and factor in all costs — not just the deposit.
New Builds in Our Area
There are several new build developments across Chorley, Buckshaw Village, and the wider Lancashire area offering these schemes. If you are interested in exploring new build options, we can help guide you through the process.