Homebuyers considering a move are being encouraged to explore the options available to them, as new figures reveal how the mortgage market is adapting to changing affordability pressures and helping buyers with smaller deposits.
Data from New Homes Mortgage Helpline shows that 53 per cent of its new-build customers so far in 2026 have taken mortgages at between 81 per cent and 90 per cent loan-to-value (LTV), compared with just 21 per cent five years ago.
The proportion borrowing at the very highest LTV levels has also increased significantly. In 2021, around one per cent of borrowers were taking mortgages at between 91 and 100 per cent LTV. That figure has now risen to 10 per cent.
The figures highlight the changing face of the new-build market, with buyers increasingly relying on higher levels of borrowing to make their move.
Supporting buyers through challenging conditions
South West housebuilder Cavanna Homes says the findings reflect the importance of giving buyers as much choice and support as possible when navigating their move.
While market conditions remain challenging, Cavanna Homes continues to see interest from people considering their next move, with around 85 per cent of its current leads having an existing property to sell.
Hannah Newnes, Sales Director at Cavanna Homes, said, “There is no doubt that the market remains challenging, and we don’t want to understate that. What we are seeing, though, is that people haven’t stopped wanting to move.
“Around 85 per cent of the leads we’re currently speaking to have a property to sell, so for many buyers the question isn’t whether they want to move, but how they can make that move work.
“It can be easy to look at the wider economic headlines and assume now isn’t the right time, but everyone’s circumstances are different. The growth in mortgage products available to buyers with smaller deposits is one example of how the market has adapted.
“That’s why we would always encourage people who are considering a move to come and talk to us rather than automatically putting their plans on hold. There may be options available that they haven’t considered, and our sales teams can help them understand what their next step could look like.”
Buyers reaching property milestones later
The data also suggests buyers are reaching key property milestones later in life. The average age of first-time buyer applicants has steadily increased over the past five years and now stands at 33, while the average home mover is 41.
Ben Crawford, Group Commercial Director at New Homes Mortgage Helpline, said, “The level of borrowing being used to purchase new homes has changed markedly over the past five years. More than half of the new-build customers we are seeing are now borrowing between 81 per cent and 90 per cent of the value of their property, while the proportion borrowing above 90 per cent has increased tenfold.
“However, that shift isn’t just buyers choosing to take on more debt. Five years ago, Help to Buy enabled purchasers in England to combine a five per cent deposit with a government equity loan of up to 20 per cent of the property value in the South West, meaning their main mortgage represented a much smaller proportion of the property price.
“On top of that, changes in house prices and affordability, buyer appetite and, importantly, the growing availability of mortgage products designed to support people with smaller deposits have moved the borrowing patterns over this period.”
New-build mortgage rates remain competitive
New-build buyers may also currently have an advantage when it comes to mortgage rates.
New Homes Mortgage Helpline’s August data shows customers choosing a five-year fixed mortgage on a new-build property accessed an average rate of 4.98 per cent, compared with 5.05 per cent for buyers purchasing second-hand homes.
Ben added, “Lenders are increasingly looking at innovative ways to remove some of the barriers to home ownership. We are seeing products designed specifically to help first-time buyers and those without substantial deposits, alongside mortgage rates available to new-build purchasers that can compare favourably with the wider market.
“That innovation is important, but there is also a wider conversation to be had about what more can be done to help people buy new homes and support the delivery of the housing the country needs.”
