If you’ve been struggling to move into a new home then NewBuy* could be the answer. The Government-backed scheme has just launched – allowing homebuyers in England to move in with only a 5% deposit in 2012.
With a 95% mortgage you could be moving in sooner than you thought!
Many people are unable to purchase a home or move house because of the large deposits required in today’s difficult mortgage market. The NewBuy scheme is designed to help overcome the deposit gap for new home buyers. It is aimed at first-time buyers and those who already own a home who only have funds for a 5% deposit on the home they wish to buy in England.
New home buyers wishing to take advantage of the scheme will need to qualify for a mortgage with a mortgage lender in the usual way and be subject to the lender’s normal assessment criteria.
However, whereas in recent years lenders have generally required larger deposits, the scheme will allow loans to be secured at 95% of the property’s value, meaning the purchaser only needs to find a 5% deposit.
The scheme has a few special requirements that you need to be aware of:
- It is available to UK citizens and those with a right to remain indefinitely in the country;
- It covers full home ownership only, so is not available for shared equity or shared ownership;
- It is available for the purchase of a person’s primary home only, so not for second homes or investment or buy-to-let purchases;
- It only applies to capital repayment mortgages, not interest-only mortgages;
- You must not be receiving help with your deposit from a local authority or other public body.
Whether you’ve outgrown your current home or you’re a first time buyer looking to get on the ladder, if you want a new home with award-winning design and a superb specification, NewBuy could help. Call us today for further details!