Help for homebuyers as mortgage guarantee scheme launches
The NewBuy Guarantee scheme, which will enable 100,000 people to buy a home, has now got underway.
The scheme will enable buyers to purchase newly built homes without having to raise the large deposits currently required by many lenders. They will only have to provide a 5% deposit.
It means that a typical buyer who might otherwise need to find a £20,000 deposit for a £100,000 property, will instead only have to find £5,000. They will then be able to get a 95% mortgage.
The lower rate is possible because the mortgages will be guaranteed by the Government and various construction companies who are taking part in the project.
Three of the leading High Street lenders have so far signed up to the scheme, which only applies to new build properties. However, the mortgages are available to both new buyers and existing property owners.
The deals will include:
As well as helping 100,000 people to buy a home, the Government says the scheme will support 50,000 jobs in the construction industry by increasing demand for newly built homes.
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