NewBuy Guarantee scheme
The NewBuy Guarantee scheme aims to help buyers who have a deposit of at least 5% to buy a new-build home. This is a smaller deposit than is normally required. The scheme allows more borrowers to secure up to a 95% loan-to-value mortgage on new-build properties (houses and flats) from participating builders in England. All mortgage lenders and house builders are welcome to join the scheme.
The initiative has been developed jointly by the Home Builders Federation and Council of Mortgage Lenders. The government is supporting 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.
Our plans for the scheme were announced on 21 November 2011 as part of the government’s housing strategy. The scheme was launched on 12 March 2012.
NewBuy has been designed to meet consumer demand and we expect the scheme to help up to 100,000 households buy a new home. More than 70 house builders and 6 lenders have signed up to the scheme.
The Home Builders Federation have produced a NewBuy website, providing information for potential home buyers.
On 25 January 2013, we announced the NewBuy part-exchange scheme. Builders offering the NewBuy scheme will now offer to buy a customer’s existing property in advance of selling them a newly built home, alongside their 5% deposit.
It will available for the first 6 months of 2013, with the possibility of being extended subject to demand.