The scheme was originally aimed at first time buyers. It’s backed by the Government, construction firms and mortgage lenders. It aims to make it easier for people to 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 £40,000, which many lenders demand, they only have to provide £10,000.
The scheme covers houses up to £500,000 and is expected to help 100,000 prospective and current homeowners.
Housing Minister Grant Shapps said: “For years increasing numbers of people have outgrown their homes but been unable to move, and first-time buyers have been unable to buy.
“They know who they are. Hardworking people who bought their home when they were single, maybe met someone, fell in love and now have a cou
ple of kids. They expected to trade up – because that’s what their parents were able to do. But now they’re boxed-in, home outgrown. Stuck in a flat, when really what they want is a family home.
“The NewBuy Guarantee will give our second-time buyers a second chance, as this is the first scheme of its kind not confined to first time buyers, but available to anyone looking to buy a newly-built home.”
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