NewBuy scheme sees the return of 95 mortgages

Date: Friday 10 February 2012

A new scheme aimed at making it easier for thousands of buyers in England to purchase a new home is being launched by the Government next month. The NewBuy initiative will help both first time buyers and those looking to move home by enabling house hunters to access 95% mortgages on properties up to the value of £500,000.

The scheme is set to make it easier for credit-worthy purchasers to secure affordable mortgages with only a 5% deposit.

The initiative is likely to go down well with buyers, many of whom see the size of deposit as the main barrier to purchasing a property. A recent survey by Taylor Wimpey revealed that 54% of first time buyers had abandoned plans to buy a house in the last 18 months because they couldn’t afford to save the large deposit required by mortgage lenders. 57% of those surveyed also said they thought the Government should be doing more to help first time buyers.

Taylor Wimpey will be offering NewBuy on all its developments across England. Kevin Belsham, national sales and marketing director, comments: “Time and time again our buyers tell us that it is mortgage availability, not mortgage affordability, which is preventing them from buying. This scheme will help both those looking to get on the property ladder and those who want to move but have limited equity in their existing home, so it’s good news for the market as a whole.”

A new scheme aimed at making it easier for thousands of buyers in England to purchase a new home is being launched by the Government next month. The NewBuy initiative will help both first time buyers and those looking to move house by underwriting 95% mortgages on properties up to the value of £500,000.

The scheme is set to make it easier for credit-worthy purchasers to secure affordable mortgages with only a 5% deposit.

The initiative is likely to go down well with buyers, many of whom see the size of deposit as the main barrier to purchasing a property. A recent survey by Taylor Wimpey revealed that 54% of first time buyers had abandoned plans to buy a house in the last 18 months because they couldn’t afford to save the large deposit required by mortgage lenders. 57% of those surveyed also said they thought the government should be doing more to help first time buyers.

Taylor Wimpey will be offering NewBuy on all its developments across England. Kevin Belsham, national sales and marketing director, comments: “Time and time again our buyers tell us that it is mortgage availability, not mortgage affordability, which is preventing them from buying. This scheme will help both those looking to get on the property ladder and those who want to move but have limited equity in their existing home, so it’s good news for the market as a whole.”

A similar scheme is currently being developed for house purchasers in Scotland and should be available shortly. To be one of the first to find out more information on both schemes when they are launched, register your interest here.