New build properties
The maximum we will currently consider lending on initial occupancy/new build properties for Buy-to-Let mortgages is as follows:
- New Build Houses and Bungalows 80% (subject to credit score)
- New Build Flats and Maisonettes 75%
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.
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 - consultant must meet qualifying criteria.
New build mortgage offer
- New build mortgage offers are valid for 180 days and are eligible for an extension of up to 28 days if the property doesn’t complete in time.
- Applications are eligible for a further 180-day extension subject to successful re-valuation, credit search and affordability checks.
- To request an extension, please contact your regional case management team (option 2). The latest we can process the mortgage offer extension is
- 14 days after the initial mortgage offer expiry if this is your customer’s first extension, or
- 14 days after the expiry of the 28-day extension
Acceptable Warranty providers
Our acceptable warranty providers are:
- Premier Guarantee;
- LABC Warranty;
- Building Life Plans (BLP);
- Castle 10 Building Standards Indemnity Scheme from Checkmate;
- Global Home Warranties (GHW);
- International Construction Warranties (ICW);
- The Q policy (Q Assure);
- Advantage HCI;
- Build Asssure;
- One Guarantee;
- Aedis / HomeProof
Retrospective new build warranties are not acceptable.
Leasehold new build properties must have 123 years unexpired lease at the time of mortgage commencement.
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.