The Government’s NewBuy scheme is making 95% mortgage a reality for prospective homeowners
The Government and developers are paving the way to make it easier and less stressful for prospective homeowners to gain access to the property ladder with the launch of the innovative NewBuy scheme, which is set to make 95% mortgages widely available across England from March 2012. Whether you’re a first-time buyer or you already own a property, the NewBuy scheme can help you to move with a deposit of just 5%.
The scheme, announced in the Housing Strategy in November and led by the Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) will provide up to 95% loan to value (LTV) mortgages for new-build properties in England, backed by a house builder indemnity fund. The scheme aims to offer homes to 100,000 buyers.
Housing Minister, Grant Shapps said the scheme will be open to UK citizens buying new-build houses and flats priced at up to £500,000 as their main home, whether they are first first-time buyers or moving up the ladder.
The results will mean prospective homeowners looking to buy a property for £150,000 would only need to pay a deposit of around £7,500 rather than as much as £30,000. This is fantastic news for couples saving for their dream home, as it means it can be achieved more quickly and cut out 3-4 years of saving.
The NewBuy scheme is part of the Government’s Housing Strategy. Designed to give a boost to the housing market and the wider economy, it aims to make 95% mortgages more widely available.
Developers that are part of this scheme such as Linden Homes, they tell us the easy steps to home ownership:
- You chose from Linden Homes range of new homes available under the scheme and with a limited deposit available they can help get you moved in quicker.
- They’ll put you in touch with their independent mortgage advisors, New Homes Mortgage Helpline, to take you through the pre-qualification process and your mortgage application.
- Subject to approval, you’ll be required to put down a minimum deposit of 5% and pay a reservation fee of between £500 and £1000 to secure your home.
- Linden Homes will pay your legal fees up to £500.
Barratt Homes has announced that they are taking part in the Government-backed NewBuy scheme with the return of the 95% mortgage for new home-buyers. These mortgages will be available on most of their homes across the UK, register you interest at www.barratthomes.co.uk and they will keep you updated.
Taylor Wimpey has joined the NewBuy scheme, which is designed to give a boost to the housing market and the wider economy. They have a success rate of 90% of their first-time buyers succeeding when applying for their mortgage.
Tony Woodman, Sales and Marketing Director for Taylor Wimpey North Thames, says: “Latest research shows that 92% of people think it is hard for first-time buyers to secure a mortgage, and that two out of three prospective property purchasers are completely put off from applying because they fear they will be turned down. But would-be buyers will be pleasantly surprised at how straightforward and stress-free the whole process can be when purchasing a Taylor ‘Wimpey home-and they may only need a 5% deposit.”
Other Government backed schemes such as the FirstBuy scheme is one of the initiatives available for first-time buyers and means selected new homes can be accessed by eligible purchasers for 80% of their full price, including a 75% mortgage and a 5% deposit, subject to status.
There is no need to fret or panic at the prospect of purchasing a home as there are an abundance of options available for you to quickly, affordably, and most importantly stress-free, gain access onto the property ladder.