Hope for first time buyers as NewBuy activity picks up
The Government’s NewBuy scheme, designed to help first time buyers purchase a property, is “gaining momentum”, according to the Home Builders Federation (HBF).
1300 properties have been reserved since the scheme launched six months ago with the last three months proving more successful than the first which saw 600 reservations made.
The news could be a blessing to many first time buyers who have continued to struggle to get on the property ladder in recent years.
NewBuy allows lenders to offer larger loan-to-value mortgages on new-build homes with the associated risk mitigated through an indemnity guarantee financed by property developers and the Government.
There are currently six lenders offering 95 per cent mortgages – Barclays, Halifax, NatWest, Santander, Nationwide and, most recently, Aldermore – with 30 builders also backing in the scheme.
Stewart Baseley is the Executive Chairman of HBF:
“We know people want to buy, but many are being thwarted by the current large deposit requirements. NewBuy is providing a lifeline for people as it allows them to buy their dream home with a 5 per cent deposit.”
The NewBuy scheme is also available to current homeowners looking to move up the property ladder.
Content correct at time of publication