A new buying scheme that will help buyers buy a new home has been launched.
The NewBuy Guarantee scheme is guaranteed and backed by the UK Government and has been designed by the Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML).
The scheme will help up to 100,000 buyers to buy a new home including first-time buyers who cannot get the mortgage they need with the ability to borrow a 95% loan-to-value ratio. It is also designed to help buyers who have an existing home and want to upsize their property but are finding it difficult to obtain a mortgage.
Buyers need to pay between 5% and 10% deposit. The Government guarantees 5.5% of the purchase price, and the home builders pay the mortgage lender 3.5% of the property purchase price. This scheme enables mortgage lending to buyers who would not have enough of a deposit to be able to buy a new home.
The scheme is available on a wide range of new homes up to the value of £500,000 or less. It includes new developments in Cambridgeshire, new homes in Scotland, new homes in Birmingham and new homes for sale in Kent. Over 130 home builders have signed up to offer the scheme including Bovis Homes, Linden Homes, Redrow Homes, Taylor Wimpey Homes, Bellway, and Persimmon Homes. Other house builders across the UK are expected to sign up to the scheme including house builders with new homes for sale in Suffolk and new houses in Norfolk.
Stewart Baseley, executive chairman of the Home Builders Federation, said: "NewBuy will help thousands of people to meet their aspirations to buy a new home, freeing up the housing market and helping first time buyers and those unable to take the next step on the ladder."
To qualify for the NewBuy mortgage, buyers must be a British citizen and the property must be their primary home and not a buy-to-let property. Interested buyers can register their interest with home builders to receive further information.
Notes to Editors:
What House? is a leading property website that features thousands of new houses in Suffolk and new houses in Kent as well as the rest of the UK. It also provides the latest property news, valuation of homes and property and mortgage advice. Over the last 30 years, What House? has held their annual What House? Awards, which are the longest established New Homes awards in the UK recognising UK house builders and developers across 21 categories.
NewBuy Scheme Launched to Help Buyers
Company: What House?