NewBuy is a government scheme that lets you buy a newly built home with a deposit of only 5%. It is only available on newly built homes worth less than £500k, where the builder has made an agreement with mortgage lenders.
Under the NewBuy scheme, housing developers pay the mortgage lender a small amount of the purchase price, while the government guarantees another chunk, which reduces the risk for the lender. The lender can then offer house buyers a mortgage of up to 95% loan-to-value.
The scheme had an indifferent start, but more and more lenders are now signing up. Nearly a year in, and NewBuy may be on track to help the sales of 10,000 properties a year.
Unfortunately the NewBuy website doesn’t allow you to find easily the places where NewBuy is available. It does list all the developers offering the NewBuy scheme though. A quick glance through shows that they are building in the following Cambridgeshire locations:
- Cambourne – Bovis, Taylor Wimpey
- Cambridge – Berkeley Group, Charles Church, Crest Nicholson
- Ely – Barratt Homes
- Huntingdon – Charles Church
- Longstanton – Charles Church, Linden Homes
- St Ives – Linden Homes, Taylor Wimpey
- St Neots – Bovis, Miller Homes
- Trumpington – Bovis, Countryside Properties
If you are aware of any other Cambridge developments offering NewBuy feel free to comment below.
If you need any advice about the NewBuy scheme, or which mortgage would be best for you, contact Limetree Financial Services today. We are truly independent and experienced mortgage brokers, and it won’t cost you a thing to talk to us.