Deposit Boost
The developer scheme that adds to the deposit you have already saved, and what it costs you elsewhere.
Reviewed and signed off by Patricia Ogunfeibo
Solicitor and Chartered Tax Adviser, both non-practising. UK property since 1986.
Last reviewed
- Applies to:
- England
- Last reviewed:
- Next review:
- November 2026
Checked against GOV.UK, lender and industry sources. Sources are listed at the end of this guide.
Scheme and lender rules can change. How we label evidence.
Prefer to listen? This guide is available as audio, roughly 8 minutes of listening.
Executive Summary
Deposit Boost is a private housebuilder incentive. You put down a deposit, usually 5%, and the developer adds a matching contribution so that you reach a higher loan to value band and a better mortgage rate.
The money is real, but it is still an incentive on the plot. Treat it the way you would treat any discount: ask what else the builder would give you instead, and check the plot is priced fairly in the first place.
This guide covers who offers it, how the contribution is treated by lenders, the paperwork involved, and what to compare it against.
How Deposit Boost Works
You reserve a new build plot and put down your own savings as the deposit. The developer then adds a contribution, commonly matching your 5%, so the lender sees a larger total deposit. A 5% deposit topped up to 10% moves you from a 95% mortgage to a 90% mortgage, which usually means a lower interest rate.
The contribution is a gifted deposit from the vendor. Lenders treat vendor gifted deposits differently, and not every lender accepts them, so the scheme only works with participating lenders.
Confirm the terms in writing
Ask the developer for written confirmation of the amount, that it is a gift rather than a loan or a charge on the property, and that it is not repayable if you sell within a set period. Your solicitor should see this before exchange.
| Feature | Details |
|---|---|
| Your contribution | Usually 5% of the purchase price from your own savings or a family gift. |
| Developer contribution | Commonly a matching 5%, sometimes less, depending on the plot and the builder. |
| Effect on your mortgage | A larger total deposit moves you into a lower loan to value band, which normally reduces your rate. |
| Property type | New build homes on participating developments. |
| Lender acceptance | Only lenders that accept vendor gifted deposits will consider it. Your broker needs to confirm this early. |
| Valuation | The lender values the property independently. If the valuation comes in below the asking price, the shortfall is yours to cover. |
| Repayment | The contribution is normally a gift, not a loan. Confirm this in writing with the developer and your solicitor. |
What to Weigh Up
A larger deposit genuinely helps: a lower loan to value band means a lower rate and a smaller loan. The trade offs are the same as any new build incentive.
- The contribution is part of the plot's incentive budget. If you take it as a deposit boost, you probably cannot also take a price reduction of the same size.
- A new build premium can quietly cancel out the benefit. Check what comparable resale homes nearby are selling for.
- If you sell within a few years, a home bought at full asking price with an incentive can be worth less than you paid. Plan to stay put long enough to ride that out.
- Your solicitor must disclose the vendor gift to your lender. Never agree to keep an incentive off the paperwork.
The Process, Step by Step
1. Confirm the plot offers Deposit Boost and get the amount in writing.
2. Speak to a whole of market broker and identify lenders that accept vendor gifted deposits.
3. Get a decision in principle based on the combined deposit.
4. Instruct a solicitor experienced in new build purchases and hand over the incentive paperwork.
5. Check the valuation when it comes back and be prepared to renegotiate if it is short.
6. Watch the build programme against your mortgage offer expiry, and ask your broker about extensions early.
Keep building your own savings
An incentive should sit on top of your own plan, not replace it. Use the Deposit Builder to keep your own savings moving while you look at plots.
Myths vs Facts
MYTH
A developer deposit contribution is free money.
FACT
It comes from the incentive budget on that plot. You are usually choosing between the contribution and something else of similar value, such as a price reduction.
MYTH
Any lender will accept a developer deposit.
FACT
Vendor gifted deposits are accepted only by some lenders, and often with limits. Check before you reserve, not after.
Frequently Asked Questions
What is Deposit Boost?
It is a housebuilder incentive where the developer contributes towards your deposit, commonly matching the 5% you have saved, so you qualify for a lower loan to value mortgage on a new build home.
Do I have to pay the developer contribution back?
Normally no, because it is a gifted deposit rather than a loan. Get written confirmation of the terms and have your solicitor check that no charge is registered against the property.
Will every lender accept it?
No. It is a vendor gifted deposit and only some lenders accept those, often with a cap on the percentage. A whole of market broker should confirm lender appetite before you reserve.
Does the contribution reduce the purchase price?
No. The price stays the same and the contribution goes towards your deposit. Ask the builder what price reduction they would offer instead so you can compare the two.
Is Deposit Boost only for first-time buyers?
It depends on the developer. Some restrict it to first-time buyers, others open it to home movers. Ask the sales office about the rules on that specific development.
What happens if the valuation is lower than the price?
The lender lends against its own valuation. If it comes in below the asking price you either renegotiate, cover the difference in cash, or walk away.
Action Checklist
Where this comes from
Each source is labelled so you can tell a government rule from market practice, and both from our own view. Read our evidence standard.
- Market practiceOwn New, Deposit Boost product information
- Government ruleGOV.UK, gifted deposits and Stamp Duty Land Tax
- Our guidancetenant2owner editorial standards and our own interpretation
Your next steps
You do not need to read everything. Based on this guide, these are the useful next moves.
1. Do this now
Deposit BuilderSee when your deposit could realistically be ready.
2. Read this next
Developer Schemes3. If this applies to you
No deposit pathway
Not sure where this fits? See it in your Blueprint