The government’s NewBuy scheme, announced in March of this year, is making home ownership a reality at a number of locations across the UK according to developers Taylor Wimpey. The house builders are taking part in the scheme, meaning 95% mortgages are now widely available on all of its developments in England.

Designed to help get the property market moving again, NewBuy is a mortgage indemnity package designed to help those buying a new home up to the value of £500,000 overcome the deposit gap. Many major buildings have joined the scheme, allowing new buyers to partner with one or more mortgage lenders to secure a 90-95% loan on a newly built home. With the standard deposit for a new build peaking at around 30% - although 20% Loan to Value mortgages are also common – the NewBuy deal represents a saving of as much as 25%. This means the purchaser need only save a 5% or 10% deposit to purchase the property. Buyers opting to use NewBuy to purchase still need to qualify for a mortgage with a lender and meet the lender’s usual lending requirements but will not need as big a store of cash for a deposit as was previously the case.

Both first time buyers and existing homeowners can qualify for a NewBuy 95% mortgage and with the scheme available through 31 house buiders including Taylor Wimpey, Redrow, Bovis and Kier, the choice of new home is a generous one. While NewBuy is currently only available in England, separate schemes are also being considered in Scotland and Wales. 

Five lenders are currently signed up to the scheme; Woolwich, Santander, NatWest, Halifax and Nationwide.

Rebecca Peach, managing director of online estate agent, I Am The Agent, says the NewBuy scheme is a great opportunity for anyone wanting to invest in property. “The larger deposits which have been required by many lenders over the last 24 months have definitely been a huge barrier to home ownership and have made the prospect of buying a new build simply impossible for a lot of buyers. The fact that purchasers can get their hands on a new property with just a 5% mortgage is a really positive step for many who have felt that their only option was to rent. And with such a large selection of house builders backing the scheme there’s a wonderful range of property to choose from, in most areas around the country.”