Critics advise NewBuy mortgage rates remain too high.

Several house-builders signed up to the NewBuy scheme say lenders mortgage rates are too high and need to be reduced.

The view held by some of the developers is that the scheme will have little impact and may be doomed to fail unless lenders cut their NewBuy rates.

At present around 750 low deposit homes have been reserved under the scheme, but the feeling is the mortgage rates offered are providing little incentive for more low deposit buyers to reserve property.

If you are looking for a low deposit mortgage call Deal Direct. We are a 'whole of market' broker who will search the entire mortgage market to source the right deal for your circumstances.

When setting up the scheme the government aimed to help 100,000 small deposit buyers. With just 750 homes having been reserved so far, it remains to be seen how and when the 100,000 target will be met.

Redrow who was one of the first builders to have signed up is sceptical warning that unless rates become more competitive up take of NewBuy homes will remain low.

In response some of the lenders signed up to the scheme have announced that their NewBuy mortgage rates are to be reduced.

Barclays, the Nationwide and Halifax have all cut their mortgage rates by up to 0.3%. However despite cuts their rates all remain above 5%. Currently NatWest are the only NewBuy lender with a rate on offer below 5%.

Not all buyers with a small deposit want to purchase new build property. If you are looking for a competitive offer from the wider mortgage market to purchase an older property contact Deal Direct.

Call one of our advisers for a low rate offer today.