Housing Minister Grant Shapps today welcomed Santander’s decision to start offering mortgages under the NewBuy Guarantee scheme.
Just two months after its launch, Santander has become the fifth lender to become part of the scheme that will help prospective home buyers buy new build properties.
The NewBuy Guarantee scheme enables those looking to get on or move up the property ladder the opportunity to do so with just a fraction of the deposit currently required.
Santander will initially be working closely with four different housebuilders to offer 95 per cent mortgages on their new build properties.
The products available will include:
- 3 year fixed at 5.49 per cent with a £99 fee
- 5 year fixed at 5.49 per cent with a £99 fee
- 7 year fixed at 5.99 per cent with a £99 fee.
Grant Shapps said:
It’s great news that Santander will start offering its customers deals on NewBuy Guarantee properties. As one of the UK’s biggest mortgage providers, their participation demonstrates the growing enthusiasm by lenders to get involved in this scheme, and will boost the range of options customers can choose from when buying their newly-built home.
The NewBuy Guarantee is offering a ray of hope for thousands of people who thought their dream of home ownership might never happen. Thanks to the agreements the Government is striking with lenders and builders across the industry, those aspiring to get on the property ladder are now able to do so with a fraction of the deposit they needed before.
Phil Cliff, Director of Santander Mortgages, Santander said:
Santander is delighted to be joining the NewBuy scheme and has launched a range of competitively priced products with low upfront fees which reflect our commitment to NewBuy and customers, particularly first time buyers looking to get a start on the housing ladder. The range will have wide appeal and is designed to meet the needs of both first-time buyers looking to buy their first home and existing homes owners who are considering moving house.
Sales of new homes have suffered since the economic downturn in 2008 and borrowers with smaller deposits have found it more difficult to access funding to purchase new homes. NewBuy has collectively brought together lenders, builders and the Government to provide a solution to increasing the supply of affordable credit on new build homes. The NewBuy scheme provides a strong platform to help get the overall housing market going and will also have positive benefits on the wider UK economy.
The four builders working with Santander are:
Bovis Homes; and