The scheme was set up in March to help people buy a home by providing 95% mortgages on newly built properties.
It means that instead of a typical buyer having to provide a deposit of £20,000 on a £100,000 home, which many lenders demand, they only have to provide £5,000.
It’s ideal for people who can afford to repay a mortgage but can’t raise the high deposits now required.
The scheme covers houses up to £500,000 and was expected to help 100,000 people, but so far only a few thousand homes have been sold.
The main problem seems to be that few people have heard about the scheme despite efforts by ministers to get the message across. There’s also the problem that many would-be homeowners have stopped thinking about buying because they feel it’s beyond their reach.
Unfortunately, many of
them end up paying more in rent than they would in repaying a mortgage. NewBuy could help them change that.
The NewBuy Guarantee scheme was originally aimed at first time buyers but now it’s available to everyone, including existing homeowners who want to trade up to a bigger property. It’s backed by the Government, major construction firms and leading High Street mortgage lenders.
Please contact us if you would like advice on buying or selling a home.