The NewBuy mortgage scheme is now supported by half a dozen lenders.
Six lenders are now signed up to the Government's NewBuy mortgage scheme. However there is some concern among the house builders also signed up to the scheme, that the mortgage rates offered are not competitive enough.
The latest lender to sign up is Abbey who joins Barclays, Natwest, Santander, Lloyds and Nationwide by offering 95% mortgages from 5.49%.
A spokesperson for Redrow 1 of the 13 building firms now signed up to the scheme, commented saying that the rates offered at between 5% and 6% are just not competitive enough to attract would-be buyers to use NewBuy mortgage scheme.
However a spokesperson for Higgins, the latest house builder to sign up has said that the scheme is a good initiative for helping more buyers enter the housing market. It tackles the problem faced by many who previously have had to save up a large deposit.
Recent figures from the Home Builders Federation reveal that there are currently 400 people who have reserved a home through the NewBuy scheme. It is hoped that during the next 2 to 3 years as more lenders and house builders sign up, tens of thousands of homes could be purchased by low deposit buyers.
If you are considering the NewBuy mortgage scheme and would like a comparison of the rates on offer against the wider market contact Deal Direct.
Deal Direct can make your home buying dream a reality.
