Buy a New Build Home With a Low Deposit

Buy a New Build Home With a Low Deposit

Saving for a house deposit can often feel like one of the biggest barriers to buying a home, especially for first-time buyers. 

At Miller Homes, there are a range of schemes and incentives that may be available to support buyers in the process of either moving home or getting onto the property ladder, subject to lender criteria, affordability, development availability and individual circumstances. Selected developments may also offer deposit contributions, Deposit Match and other buyer support schemes.

Key things to know

  • With some lenders offering 95% mortgages on selected new-build homes, you may be able to buy a new build home with as little as a 5% deposit, subject to lender criteria, affordability checks and availability. 
  • Miller Homes may offer incentives on selected homes aimed to help reduce upfront costs. These are subject to availability, terms and conditions and may not be suitable or available for every buyer. 
  • Schemes are available for both first-time buyers and existing homeowners. 

 

The information on this page is intended as general guidance only. It should not be treated as financial, mortgage, legal or tax advice. The right option for you will depend on your personal circumstances, affordability, lender criteria and the specific scheme or incentive available. You should take independent financial advice from a qualified adviser before deciding whether any purchase, mortgage, incentive or scheme is suitable for you. Taking out a mortgage is a significant financial commitment and your home may be repossessed if you do not keep up repayments on your mortgage. 

Your options

There is no single “low deposit mortgage” route. Instead, there are a range of schemes, mortgage products and developer incentives that may be available depending on your circumstances, affordability and the development you are interested in.

Incentives and schemes may affect mortgage eligibility, affordability assessments, lender decisions and the amount you need to borrow. Buyers should seek independent financial advice as to how any incentive or scheme will be treated by their lender and how it may impact the affordability of any such mortgage. 

Buy with a low deposit

It may be possible for some buyers to purchase a new build home with a deposit of 5% to 10%, rather than the traditional 15% or 20%.

Some lenders now offer 95% loan-to-value (LTV) mortgages on new build properties, especially through schemes such as Deposit Unlock. Deposit Unlock was developed alongside the housebuilding industry, which may allow eligible buyers to apply for selected mortgage products with just a 5% deposit.

At Miller Homes, depending on a buyer’s personal circumstances and affordability, selected developments and plots may offer low deposit support or buyer incentives, including:

  • Deposit Match
  • Deposit Paid
  • First Homes
  • Family Deposit
  • First Homes Fund in Scotland

Terms and conditions apply, and availability varies by development and plot.

Get a helping hand

If saving a larger deposit is delaying your move, there are schemes designed to reduce the amount you may need upfront. You should obtain independent financial advice before proceeding with any scheme to assess its suitability for your circumstances.  

Deposit Match

With Deposit Match, Miller Homes could match the deposit you have already saved by up to 5% of the purchase price on selected homes. For example, if you have saved a 5% deposit yourself, we may contribute an additional amount towards the purchase price. Availability, eligibility, lender treatment of incentives, and terms and conditions apply.

Deposit Paid

On selected homes, Miller Homes may contribute 5% of the purchase price towards your deposit. Availability, eligibility, lender treatment of incentives, and terms and conditions apply.

Family Deposit

For buyers receiving support from family members, the Family Deposit scheme could offer a financial reward to those relatives helping with your deposit contribution. Any payment may be subject to income tax with the recipient of any reward being responsible for declaring and paying any tax that may be due on this payment. Buyers and family members should obtain independent financial and legal advice before proceeding. 

First Homes

The government-backed First Homes scheme offers eligible first-time buyers in England a discount of at least 30% on selected new build homes. This could reduce the size of the deposit and mortgage that may be required, depending on eligibility and your circumstances. Buyers should review the applicable scheme rules and take independent financial advice as to any implications for future re-sale and/or occupation. 

First Homes Fund for Scotland

Designed to support first-time buyers, this Scottish Government-backed scheme offers an equity contribution of up to £10,000 towards your deposit, aiming to reduce the upfront cost of getting onto the property ladder. Buyers should review the applicable scheme rules and take independent financial advice as to any implications for future re-sale and/or occupation.

Find a low deposit mortgage

Low deposit mortgages can be available through lenders offering 90% or 95% mortgages, which allows you to contribute a smaller deposit while borrowing the remaining balance through your mortgage.

Mortgage products, rates, fees, eligibility, lender criteria and availability can depend on a number of factors, which may include:

  • Your income and affordability
  • Credit history
  • Existing debts or financial commitments
  • The property type and value

You should obtain independent financial advice, which will allow you to understand which products may be available and suitable for you and your circumstances. 

Can you buy a house with no deposit?

True 100% mortgages are still relatively uncommon in the UK, particularly for new build homes, but some lenders are beginning to introduce products aimed at helping renters or first-time buyers with very small savings.

In most cases, buying a new build home will still require some form of deposit, even if it is relatively small. Some lenders may offer mortgage products requiring only a 5% deposit, subject to lender criteria, affordability checks and availability.

Why buyers choose new build homes

For many buyers, new build homes can often  offer the following potential benefits: 

  • Maintenance costs may be lower compared with older properties
  • Improved energy efficiency and potentially lower bills (though actual costs vary depending on the property and usage)
  • Brand new fixtures and fittings
  • NHBC or equivalent warranty protection
  • Buyer incentives and moving support schemes (availability varies by development or plot
    •

Many buyers also value the ability to personalise aspects of their home when purchasing early in the build process (which may be subject to additional costs that should be considered in respect of affordability).

Things to consider before buying with a low deposit

While low deposit mortgages aim to help buyers get onto the property ladder sooner, there are a few important considerations:

  • Monthly repayments may be higher with a smaller deposit
  • Interest rates on higher LTV mortgages can sometimes be higher
  • It may take longer to build equity in your home
  • Property values can fluctuate, particularly in the early years, and so if property values fall, buyers with a smaller deposit may be at greater risk of negative equity
  • Interest rates may change, which could affect monthly repayments
  • Borrowing a higher proportion of the purchase price may increase the total costs of borrowing 

It is important to understand all costs involved, including reservation fees, legal fees, mortgage costs and moving expenses before committing to a purchase. Mortgage products, rates and eligibility criteria vary by lender and individual circumstances. Please seek independent financial advice before choosing a mortgage or deciding whether a low deposit option is suitable for you. 

Explore ways to buy with Miller Homes

Miller Homes may offer selected incentives and schemes on certain developments or plots (subject to availability, eligibility and any applicable terms and conditions), which are designed to support buyers at different stages of the property journey, from first-time buyers to existing homeowners looking to move.

Explore Miller Homes Offers & Incentives for more information.

You can also speak to your local sales centre to find out which schemes are available on developments near you.