Government announces NewBuy scheme in an attempt to get the New Build property market moving.

The government has announced details of its NewBuy scheme, which aims to assist buyers who have a deposit of at least five per cent to buy a new build home.

The NewBuy scheme assists buyers who have a deposit of at least 5 per cent to buy a new build home. This is a smaller deposit than is normally required. The scheme will allow more borrowers to secure up to a 95 per cent Loan to Value mortgage on new build properties (houses and flats) from participating builders in England.

NewBuy was launched on Monday 12 March 2012. The initiative was developed jointly by the Home Builders Federation and Council of Mortgage Lenders. The Government is backing the scheme to help those home buyers who have found themselves excluded from sections of the market because they don’t have a large enough deposit.

NewBuy is expected to assist up to 100,000 households in buying a new home. All mortgage lenders and house builders operating in England are welcome to join the scheme; that includes lenders and builders who are not members of the Council of Mortgage Lenders or the Home Builders Federation.

For further information on the scheme  please do not hesitate to contact Mark Lynn on 0191 2840363 or mark@carrandcosolicitors.com