You are here: Home - Mortgages - First Time Buyer - News -

1,300 loans reserved through NewBuy since March

0
Written by:
10/09/2012
Thirteen hundred homes have been reserved through the government’s NewBuy scheme since its launch in March, the Home Builders Federation (HBF) has confirmed.
1,300 loans reserved through NewBuy since March

The HBF last reported that reservations topped 600 in July; however the government has yet to publish statistics which reveal the number of completed NewBuy transactions.

The scheme enables lenders to offer mortgages for up to 95% of the value of a newly-built property, partially underwritten by guarantees provided both by the government and the builder of the new home. The scheme was launched with the aim of selling 100,000 new homes over the next three years.

At launch it had seven builders and four lenders on board. There are now over 30 builders selling homes using NewBuy, with Aldermore announcing last week that it would also be offering NewBuy mortgages.

Charles Haresnape, managing director of Aldermore Residential Mortgages, said: “We have launched the scheme, which is available to both first and subsequent time buyers, in conjunction with Fairview New Homes Limited which has developments located throughout the South and East of England. We’re offering borrowers a choice of a 2 or 3 year fixed rate at 5.48% and we’ll be rolling the scheme out with other property developers over the course of the coming weeks.”

The HBF said that take up of NewBuy has been broadly in line with the government’s FirstBuy Direct scheme, which is being extended by £280m.

NewBuy currently operates only in England. But there are moves underway to launch similar initiatives throughout the UK. The Council of Mortgage Lenders (CML) is working with the Scottish government and Homes for Scotland on a scheme similar to NewBuy called MI New Home. The Scottish scheme is expected to launch this month.

Meanwhile, the Welsh government has begun discussions with interested parties on a similar initiative, while exploratory discussions have also begun in Northern Ireland.

Stewart Baseley, executive chairman at HBF, which proposed and developed the scheme with the CML, said: “We are now starting to gain some real momentum and with more and more builders and lenders coming on board, we are confident NewBuy will make a real difference.

“We know people want to buy, but many have been thwarted by the current large deposit requirements. NewBuy is proving a lifeline for people as it allows them to buy their dream home with a 5% deposit. Many NewBuy first-time buyers had been trying to save a deposit while staying at home with their parents or living in rented accommodation. Other buyers have been home owners stuck in a house no longer big enough for their growing family. NewBuy is proving a real winner for them after such a frustrating time.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2204247-piggy-bank-0911
Gay elderly more likely to rely on private pensions: Stonewall

Lesbian, gay and bisexual people are far more likely to rely on personal and occupational pensions than their heterosexual peers,...

Close