This question is one of the first questions every buyer asks, and for good reason. From residents to overseas investors, understanding how mortgages work in the UK can make or break your property journey. The good news? With the right support, the process is simpler than it seems.
At Entralon, we listen carefully to your goals and offer free, unbiased property recommendations because we don’t sell to you; we just guide you. We also provide full legal support to make your mortgage application in the UK smooth, secure, and stress-free.
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Are new build homes in London a better option for buyers using a mortgage?
Yes, especially if you’re looking for energy savings, easier approvals, and long-term security. Whether you’re a UK resident or an overseas investor, new builds offer financial and practical advantages that often make mortgage approval smoother and ownership more rewarding.
Why Are New Build Homes in London a Great Choice for Mortgage Buyers?
Here’s why mortgage buyers are increasingly choosing new builds in the UK property market:
Energy-Efficient and Low-Maintenance
Over 80% of new build homes in England have an EPC rating of A or B, compared to just 2.2% of existing homes.
This means lower energy bills, reduced carbon footprint, and minimal need for costly upgrades or repairs.
10-Year Structural Warranties
Most new build properties come with a 10-year warranty (like NHBC or equivalent), including a 2-year developer guarantee to fix minor defects and 8 years of structural coverage.
This added security is also a confidence booster for mortgage lenders.
Incentives for First-Time and International Buyers
Developers frequently offer financial incentives, such as legal fee contributions, furniture packages, or deposit top-ups, especially for first-time buyers or foreign investors.
New schemes like Own New, Rate Reducer even help you access lower interest rates.
Better Lending Terms
Major lenders such as Nationwide now offer up to 95% Loan-to-Value (LTV) mortgages on selected new build homes, with flexible terms for foreign buyers as well.
This means lower upfront deposits and potentially better interest rates.
Quick Comparison: New Build vs. Existing Homes
Pro Tip: If you’re planning to buy a property in London with a mortgage, especially as a non-UK resident, a new build home may offer the lowest barriers and the most financial upside.
At Entralon, you can browse the full list of new build homes across London.
No filtering, no hidden listings, just complete market access.
Whether you’re a UK citizen or an international buyer from the EU, GCC, or beyond, can you get a mortgage to buy a new build in London?
Yes, and you often have more options than expected. Lenders in the UK now offer a variety of mortgage products tailored to residents, expats, and even non-resident foreign nationals.
What Mortgage Options Are Available for UK and International Buyers Purchasing Property in London?
Here’s a breakdown of what’s available based on your residency and background:
For UK Residents (Citizens & Permanent Residents)
UK residents benefit from the broadest range of mortgage options, including:
- Fixed-rate and tracker mortgages with LTVs up to 95% (especially for new builds)
- Access to first-time buyer schemes like the Own New Rate Reducer
- Faster approvals and competitive interest rates
- Perfect for buyers with stable income and a UK credit history
For EU Residents (Living Outside the UK)
EU citizens can typically:
- Access mortgages from international-friendly UK lenders
- Borrow up to 70–75% LTV, depending on income verification and currency risk
- Benefit from lower interest rates if income is paid in GBP or Euros
- Many lenders consider EU nationals as “low-risk” foreign borrowers
For Non-EU International Buyers (e.g. UAE, Saudi Arabia, etc.)
Non-EU buyers, including Gulf investors, can:
- Secure UK mortgages from specialist lenders experienced in international financing
- Borrow up to 65–70% LTV with verified overseas income
- Choose interest-only or buy-to-let mortgages (especially popular with investors)
- No UK visa or residency required in most cases
Are There Sharia-Compliant Mortgage Options for London Property?
Yes, Islamic home finance is available in the UK from providers like Gatehouse Bank and Al Rayan.
These products:
- Use Ijara (leasing) or Murabaha (cost-plus sale) models instead of interest-based loans
- Are FCA-regulated and fully Sharia-compliant
- Ideal for Muslim buyers from the GCC seeking ethical financing for London homes
Comparison Table: Mortgage Options for Buyers in London
What Are the Steps to Get a Mortgage for a New Build Property in London?
Whether you’re a UK resident or an overseas buyer, how does the mortgage process work when buying a new build in London?
It follows a clear and structured path, from assessing your finances to receiving the keys. Here’s what to expect, step by step.
Assess Your Financial Position
Start by reviewing your income, credit history, existing debts, and available deposit. Most lenders require a stable income and a deposit of at least 5–10% of the property value, though international buyers may need more.
Get a Mortgage Agreement in Principle (AIP)
An AIP is a lender’s initial indication of how much you could borrow based on your financial profile. It’s usually valid for 60–90 days and shows estate agents you’re a serious buyer.
Find a Property and Make an Offer
Search for suitable new builds in London and submit an offer through the estate agent once you’re ready. Once your offer is accepted, you can proceed to the full mortgage application.
Submit a Full Mortgage Application
Provide documents such as ID, proof of address, income statements, bank statements, and deposit evidence. For foreign nationals, translated financial documents and visa status may be required.
Valuation & Underwriting
The lender arranges a property valuation to confirm the value of the home. At the same time, underwriters review your documents and assess risk. This stage can take 2–4 weeks.
Receive Your Mortgage Offer
If approved, you’ll receive a formal mortgage offer, usually valid for 3–6 months. Your solicitor or conveyancer will also receive a copy to begin the legal process.
Exchange Contracts
Your solicitor conducts searches and final checks on the property. When all conditions are met, you exchange contracts with the seller and pay the deposit (typically 10%).
Completion Day
The mortgage funds are transferred from your lender to the seller’s solicitor. You receive the keys and become the legal owner of your new home in London.
Estimated Timeline
What Are the Best Areas in London to Buy a New Build Home with a Mortgage?
Looking to finance a new build property in London with a mortgage?
Certain zones offer better value, strong capital growth, and high mortgage approval rates, especially for first-time buyers and overseas investors. Whether you want strong rental potential or a future-ready neighbourhood, these areas are worth your attention.
Nine Elms (Zone 1–2, South West London)
One of London’s biggest regeneration zones, Nine Elms, offers luxury riverside apartments with excellent transport via the Northern line extension.
High mortgageability and strong demand make it a favourite for both UK and overseas buyers.
Browse all mortgage-eligible new builds in Nine Elms, London on Entralon
Barking Riverside (East London)
This fast-growing Thames-side community is part of a multi-billion-pound regeneration scheme.
It offers affordable new builds with Help to Buy-style mortgages and strong appeal for first-time buyers and investors alike.
Browse all mortgage-eligible new builds in Barking Riverside, London on Entralon
Wembley (North West London)
Known for its stadium and skyline of new apartments, Wembley offers great value per sq ft and strong rental yields.
Mortgage lenders actively support developments here, with many offering up to 90–95% LTV for eligible buyers.
Browse all mortgage-eligible new builds in Wembley, London on Entralon
Acton & West London
Areas like Acton, Ealing, and White City are rapidly transforming with new build schemes near Crossrail (Elizabeth Line).
These locations offer high mortgage approval rates and long-term value growth backed by infrastructure investment.
Browse all mortgage-eligible new builds in Acton, Ealing, and White City, London on Entralon
Comparative Overview of Top London Areas for Mortgage-Financed New Builds
Are there hidden or location-specific costs when buying a property in London with a mortgage as a non-UK resident?
Yes, and being aware of them can save you thousands. From tax rules to currency shifts, here’s what every overseas mortgage buyer should know before committing.
What Extra Costs and Considerations Should Foreign Buyers Expect When Getting a Mortgage for a New Build in London?
1. Stamp Duty for Foreign Buyers (Additional Surcharge)
Foreign buyers purchasing residential property in England pay a 2% SDLT surcharge on top of standard rates.
As of 2025, this applies to non-UK residents buying property worth over £250,000, including those buying with a mortgage.
Use HMRC’s online calculator to estimate your stamp duty liability.
2. Currency Exchange Impact
If you’re buying in GBP but earning in EUR, USD, AED or other currencies, fluctuations in exchange rates can significantly impact your affordability.
Using a specialist FX provider or locking in exchange rates in advance can help mitigate risk.
Even a 1% shift in currency can affect your deposit or monthly payments.
3. Time Zone, Legal, and Communication Factors
Different time zones and legal systems can slow down the mortgage process or introduce delays in signing and document verification.
That’s why working with UK-based solicitors and bilingual agents experienced in international sales is critical.
Final Thoughts
Understanding the UK mortgage process can feel overwhelming, especially for international buyers, but with the right guidance, it becomes far more manageable.
Whether you’re a UK resident or an overseas investor, knowing how to navigate the system is key to a successful purchase.
That’s why Entralon partners with FCA-regulated mortgage brokers and experienced international property lawyers to simplify every step of your journey.
From securing competitive mortgage rates to handling legal requirements, our experts provide tailored, end-to-end support designed around your goals.
View London New Builds Investment Properties
FAQ
1. Can Foreigners Buy Property in the UK?
Yes, there are no legal restrictions on foreigners purchasing property in the UK. However, non-UK residents may face additional requirements, such as higher deposit thresholds and more stringent identity checks.
2. What Is the Stamp Duty Land Tax (SDLT) for Non-Residents?
Non-UK residents are subject to an additional 2% SDLT surcharge on top of standard rates for residential properties in England and Northern Ireland.
3. Can Non-Residents Obtain a Mortgage in the UK?
Yes, non-residents can secure mortgages in the UK, though they may encounter stricter lending criteria, including larger deposit requirements and limited lender options.
4. How Does Currency Exchange Affect Mortgage Payments?
Fluctuations in exchange rates can impact the total cost of purchasing a property. Utilising forward contracts or specialist FX providers can help mitigate this risk.
5. What Are the Typical Deposit Requirements for Foreign Buyers?
Foreign buyers are generally expected to provide a deposit ranging from 25% to 40% of the property’s value, depending on the lender’s terms and the buyer’s financial profile.
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