"Understanding the nuance of this sector has been central to shaping April’s innovative approach, so we can help more people into homes"
- Rachael Hunnisett - April Mortgages
April Mortgages has unveiled a new lending proposition for the new build market, offering up to 90% LTV on both houses and flats, up to 7x LTI, and acceptance of up to 5% builder incentives. The product is designed to simplify lending for advisers while supporting a wider range of buyers.
Key product features
90% LTV for houses and flats.
Up to 5% builder incentives accepted without penalty.
Up to 7x LTI for 10-year fixed rates or £50k+ income.
Nine-month validity period.
Employed and self-employed income accepted.
No early repayment charges when moving or repaying from own funds.
Unlimited overpayments and automatic rate reductions as LTV decreases.
Fixed rate certainty from five to 15 years.
The new build sector has faced challenges due to tighter lender criteria, particularly for higher LTVs and flats. Builder incentives, though common, can also reduce maximum borrowing with some lenders, creating friction for advisers. April Mortgages is addressing these barriers by offering high-LTV lending, accommodating standard incentive structures, and providing flexible repayment options with longer-term fixed rates.
Adviser support and market access
The product is designed to help advisers serve a broader client base, from first-time buyers to home movers. James Pagan, director of product at April Mortgages, said: “It’s our pleasure to bring peace of mind to the new build market as we continue our roll out April’s innovative concept to more and more segments of the market. Our new build criteria comes with all the certainty and flexibility you’d expect from an April mortgage, supported by competitive affordability, maximum LTIs and LTVs.”
Rachael Hunnisett, director of mortgage distribution at April Mortgages, added: “We’ve built our new build criteria hand-in-hand with new build advisors and housing developers. Understanding the nuance of this sector has been central to shaping April’s innovative approach, so we can help more people into homes."
“Our new build criteria is designed to help advisers say ‘yes’ more often. From higher income multiples and accepting builder incentives to nine-month offers and lending up to 90% LTV on flats, we’re making new build lending simpler, more accessible, and adviser-friendly.”
Industry response
Rachel Geddes, strategic lender relationship director at Mortgage Advice Bureau, commented: “We're delighted to see a lender so committed to understanding the new build sector. By actively engaging with brokers and developers before building their proposition, April has created a product that truly aligns with the needs of new build customers. MAB is proud of our partnership with April, whose innovative approach is helping more prospective buyers get onto the property ladder sooner.”
Adrian MacDiarmid, head of mortgage lender relations at Barratt Redrow, said: “Working collaboratively with April Mortgages, this new product has been designed to directly address the frustrations we hear day in, day out from Londoners who feel priced out of the market. In many cases, it may even unlock homeownership sooner than they think."
“We are known for having a proactive relationship with the mortgage industry, and this innovative product is no different. The launch also coincides with our dedicated Step on the Ladder campaign to improve education around home ownership and address the concerns of the next generation of buyers. We look forward to hearing the feedback from those who have been waiting for a solution like this.”
Terry Higgins, group managing director at The New Homes Group Mortgage Services, added: “This is exactly what the new build market needs at the moment, and I believe will allow more first-time buyers and home movers to buy a new build property. Greater affordability in the mortgage market is always welcome news for buyers, particularly in the new build sector, where challenges around deposit levels, incentives, and lender criteria can often make the journey more complex. April’s new product set helps address some of those barriers, whilst also giving customers certainty and flexibility. It’s important, however, that buyers seek advice from a mortgage broker, as the UK’s leading new build mortgage specialist, we are thrilled to be working closely with April Mortgages.”
