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Lancashire housebuilder welcomes NewBuy 95% mortgage scheme

The regional managing director of the UK’s leading house builder says today’s launch of a new Government-backed mortgage scheme is the most significant boost the mortgage market has received since the economic crisis first hit the housing market in 2007.

Mark Cook, managing director of Persimmon Homes Lancashire, said the new mortgage indemnity scheme - NewBuy - which was officially launched today by the Government, is the first in several years to offer people in England the chance to buy a new home with only a five per cent deposit.

“Today’s launch of NewBuy by the Government is hugely significant as it removes the obstacle of a large deposit which has been a key factor holding back the housing market in recent years. NewBuy opens up a 95 per cent mortgage product to both first time buyers and those looking to move up the property ladder. Importantly, it has no salary cap and is available to purchasers of new homes up to the value of £500,000.

“Initial rates from the large high street lenders to support this product look very favourable, making NewBuy an attractive mortgage option for buyers of new build homes. NewBuy is a much-needed shot in the arm for the whole housing sector and – with research showing every new home built creates five jobs – the Government’s provision of up to 100,000 NewBuy mortgages will also give a welcome boost to UK growth and employment.”

Regional Sales Director Diane England added: “For the past few years it has been very difficult to get a 95 per cent mortgage, meaning buyers have had to find much larger deposits. This new scheme allows lenders to offer higher loan to value mortgages, helping more people to move into the home of their dreams.

“For example, NewBuy means a house at our Harbour Village development in Fleetwood – where we are building 85 new properties - can be available with a deposit of just £7,800 – making a new home within reach of more buyers.

“And NewBuy is not just available for first time buyers; people looking to relocate or move up the housing ladder can also access the scheme.”

Rates put forward by lenders include a 4.29 per cent fix rate repayment mortgage from Natwest and a 4.99 per cent two-year fixed rate repayment mortgage from Barclays.

A similar scheme for Scotland is currently being looked at, with a view to launch in the coming months.

To find out more visit www.persimmonhomes.com

This was posted in Bdaily's Members' News section by Caroline Garbett .