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

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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week