What is NewBuy?
Are you thinking of buying a new home, but struggling to save a large enough deposit required to secure a mortgage? If you are then you may qualify for a mortgage under the government-backed NewBuy scheme.
NewBuy is a new initiative which aims to help home-buyers who may have found themselves unable to move up or step onto the housing ladder, secure up to a 95% Loan to Value mortgage on new build properties from participating builders in England.
Which properties are eligible for NewBuy?
To qualify for NewBuy, properties have to be:
New build – residential properties being sold for the first time or for the first time in the current form;
Priced up to £500k – but there is no cap on income;
Full ownership – NewBuy is not available for shared ownership or shared equity purchase;
Primary homes – not available for the purchase of second homes, for investors of for buy-to-let purchases;
This scheme only applies to capital repayment mortgages, not interest-only mortgages;
You must not be receiving help with your deposit from a local authority or other public body;
This scheme applies to England only; separate schemes are under consideration in Scotland and Wales.
Do I qualify for NewBuy?
Buyers have to be:
UK citizens and those with a right to remain indefinitely in the country.
New home buyers wishing to take advantage of the scheme will need to qualify for a mortgage with a mortgage lender in the usual way and be subject to the lender’s normal assessment criteria.
If you are thinking of buying your new home with a “New Buy” scheme, contact our Residential Conveyancing Team who will explain the way the scheme works and help you decide if it is the right scheme for you.
Contact us on 01282 426251 or 01282 778434