Government to support buyers of new build homes

The Government has today announced it will in March launch a scheme which is aimed at those looking to purchase new-build homes.  

The ‘NewBuy Guarantee scheme’, will allow lenders to offer large mortgages on new-build homes without running the risk of losing money if the property falls into negative equity and is repossessed. Essentially the loan will be guaranteed by the developers and government (taxpayers).

It is hoped this will enable would be movers looking to buy a new-build property up to the value of £500,000 to overcome the problem of finding  large sums of money to put down as a deposit.  The scheme is looking at underwriting 95% mortgages.

It is reported, Nationwide building Society, one of the lenders which will take part, is currently working with the government to work out exactly how the scheme will operate.

The Council of Mortgage Lenders said discussions are on-going, and when the final details are announced the £500,000 cap could vary around the country.

MJP Conveyancing welcomes this move but as similar schemes have in the past operated  with little impact, we will wait and see what affect this will have on lifting the deposit affordability barrier which continues to dampen the growth within the property market.

Morgan Jones and Pett solicitors offer a fast, low cost and professional home moving service with prices starting at £230 plus VAT. Call now ion 01603877001 or via email at davidpett@m-j-p.co.uk for a FREE quote