A new scheme aimed at helping home buyers currently struggling to find a property they can afford has been announced by housing minister Grant Shapps.
The NewBuy Guarantee scheme will allow first-time home buyers and existing homeowners who want to move house to buy a new-build home with a deposit of 5% or 10%. Currently lenders demand a 20% deposit. Up to 100,000 buyers could benefit from the scheme, able to buy a brand new home with a deposit of as little as £10,000. Some housebuilders have already announced their own 95% mortgage schemes, but NewBuy Guarantee is set to increase the number of potential homebuyers who could benefit considerably
The Government initiative is part of a package of measures unveiled last year aimed at kick-starting the housing market and to give the construction industry a boost. This is part of a growth package to help kick start demand in the economy.
The Home Builders Federation and the Council of Mortgage Lenders are behind the scheme which is available on flats and houses up to a maximum value of £500,000 in England only.
Those behind the initiative believe lenders will see it as less risky as it is backed by an insurance scheme contributed to by the building industry and Government. While final details have yet to be thrashed out between Government, lenders and housebuilders before the scheme is officially launched in March.
At Coodes we have specialist teams for first-time home buyers and affordable housing. We offer a fixed price service – no move no fee guarantee
Our team will help you understand the differences between all types of housing schemes and will help you complete your home purchase as efficiently and stress-free as possible. Call 01872 246200, email firstname.lastname@example.org or visit our fixed price services website coodesdirect.co.uk
Watch our video on first time home buyers and affordable housing