West One Updates Maximum LTV Criteria for New Build Mortgages: What Borrowers Need to Know

West One Announces New Lending Criteria for New Build Properties

West One, a prominent UK mortgage lender, has updated its lending policy concerning new build houses and flats for residential mortgages. These changes particularly impact applicants considering West One’s “extra plan” products and include revised maximum loan-to-value (LTV) caps for new build properties effective for all new applications.

What’s Changing with West One’s New Build Criteria?

• New Build Houses (Extra Plan): Maximum LTV now set at 92.5%
• New Build Flats (Extra Plan): Maximum LTV now set at 85%

For those applying through West One’s core products, there are no changes. The LTV remains:

• New Build Houses: 90% LTV
• New Build Flats: 75% LTV

All new applications received will be subject to these revised LTV criteria. Existing pipeline cases, where an application fee has already been paid, are not affected by these updates.

How Are LTV Calculations Handled with Gifted Builder Deposits?

West One will now calculate the loan-to-value for new build properties based on the lower of the open market value (OMV) or the purchase price.
If your purchase involves a gifted builder deposit (an incentive provided by the builder to reduce your upfront cost), this amount will be deducted from the purchase price when calculating LTV. For example:

• Purchase Price: £100,000
• Open Market Value: £100,000
• Gifted Builder Deposit: £5,000
• LTV calculation will be based on £95,000 (Purchase Price minus Gifted Deposit)

This policy ensures that mortgage lending reflects your genuine equity position in the property, reducing risks associated with over-lending on incentivised deals.

Who Benefits From These Criteria Updates?

• First-time Buyers purchasing new build houses may benefit from the higher 92.5% LTV under the Extra Plan, allowing smaller deposits compared to many mainstream options.
• Applicants for New Build Flats should be aware that the LTV cap under the Extra Plan has changed to 85%, reflecting standard industry practice for higher-risk property types.
• Remortgagors and movers interested in new build homes should check with their advisor to see which West One product (Extra Plan or Core) best matches their needs.

What Makes West One’s Product Range Stand Out?

• Flexible Product Selection: Both Extra Plan and Core mortgage products cater to a range of new build buyers, from first-time purchasers to seasoned movers.
• Clarity on Builder Incentives: Transparent LTV calculations help you plan your finances, especially when builder incentives are involved.
• Specialist Underwriting: West One is known for specialist lending, often helping those with complex circumstances or credit histories.
• Clear Communication: West One has updated its product guide (August 2025) for full, up-to-date policy details.

Why Consider West One for Your New Build Mortgage?

• Higher LTV for Houses: Up to 92.5% LTV on new build houses for Extra Plan applicants—helpful for those with low deposits!
• Trusted Name in Specialist Lending: West One is regulated by the FCA (Financial Conduct Authority) and has a longstanding reputation in the UK mortgage market.
• Dedicated Support: Access to knowledgeable mortgage specialists for ongoing guidance.

Find Out How These Changes Affect You

If you are considering a new build house or flat and want to understand your LTV options, or how builder incentives may affect your borrowing, contact our mortgage experts today. We specialise in helping first-time buyers, movers, and those with complex needs secure the best mortgage rates for new builds in the UK.

Contact us now for a tailored mortgage assessment and unlock your new home journey with confidence!

Frequently Asked Questions (FAQs)

• Who qualifies for the new maximum LTV on new build houses or flats?
  New applicants using West One’s Extra Plan products, assessed under residential criteria, may qualify for up to 92.5% LTV for houses or 85% for flats. Individual eligibility will depend on your circumstances.
• How does a gifted builder deposit affect my mortgage application?
  Any builder incentive will be deducted from your purchase price for LTV calculations, meaning the lender will base your loan on the genuine amount you’re paying.
• Are existing applications affected by this criteria change?
  No. If you have already applied and paid an application fee, your case remains on the previous terms.
• Is West One suitable for first-time buyers aiming for a low deposit?
  Yes—especially for new build house buyers, where the LTV can reach 92.5% under the Extra Plan, reducing your deposit needs.
• How do I apply or get a personalised illustration?
  Get in touch with our mortgage team for personalised advice or visit West One for more information on current criteria, rates, and how to proceed.