New build properties
The maximum we will currently consider lending on new build houses & flats is 80%.
An initial occupancy/new build property is classed as any property being occupied and/or sold for the first time on the open market in its current state and includes converted and refurbished properties. These will fall into one of the following categories:
- Newly built property.
- Refurbished property i.e. refurbishment of an existing residential property. Typically a refurbished property will be considered as initial occupancy where the vendor is a builder/developer and the property has been vacated to allow for the refurbishment to be undertaken.
- Newly converted property i.e. conversion of an existing non residential property, e.g. an existing mill converted into flats.
- A property, either new or converted (as above), that has been tenanted and is now offered for sale by the builder/developer.
A property, either new or converted (as above), that has been tenanted and is now offered for sale by the builder/developer. Property must be subject to one of the following building control and monitoring requirements:
- Building Standards Indemnity Scheme from a warranty provider accepted by TSB.
- Professional consultant where small, solely residential development of no more than 15 units - consultant must meet qualifying criteria.
- An acceptable guarantee from a development corporation or local authority where they are the vendor.
A final inspection is required to confirm completion of the new property unless covered by an acceptable new build warranty provider.
Retrospective new build warranties are not acceptable.
New build cash incentives
- Builder cash incentives include but are not limited to deposit contributions, cashbacks, contribution to legal fees/stamp duty, mortgage subsidies.
- Cash Incentives up to 5% of the property value are acceptable. Cash incentives or any other incentives > 5% are not acceptable.
- Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive together does not exceed 95% of the value of the equity share being purchased.
All lending decisions are based on valuation or purchase price (whichever is lower).
Unacceptable Site Search
TSB Unacceptable New Build Site Search