95% deposit NewBuy mortgage scheme to be considered in Wales.
The government's NewBuy mortgage scheme launched in March has so far enabled 600 buyers to reserve a new home.
The scheme set up covered England, however Scotland launched a similar scheme called MI New Home in June. The relative success of the scheme so far has prompted the Welsh assembly to consider a similar NewBuy mortgage scheme. A 5% deposit scheme is being considered to see if it could help improve property sales in Wales.
Housing policy is a devolved area therefore through the Homes for Wales white paper, the Welsh government is proposing to support property buyers with a small deposit to purchase a home.
The proposal is subject to legal approval however any scheme would work in the same way as the NewBuy mortgage scheme guaranteeing mortgages for 95% loan to value for new-build property.
The Welsh government advises that it intends to evaluate all schemes developed in the UK, where both the government and developers contribute to a fund to be used to indemnify lenders against any losses incurred through repossession.
The government has also made a pledge to support those local authorities who want to launch their own scheme to help would-be buyers who do not have a large deposit.
Wherever you live in the UK if you are looking for a competitive mortgage you are advised to contact independent broker Deal Direct for an up to date mortgage comparison.
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