Low mortgage rate alternatives to the NewBuy scheme.

Lenders are offering low mortgage rate alternatives to the recently launched Government backed NewBuy Mortgage Guarantee scheme.

The NewBuy Guarantee scheme has been introduced by the Government to make mortgages more readily available for new build properties up to a value of half a million pounds. Deposit levels will be set at 5 % which will give hope to those with smaller deposits.

Under the scheme the property builder will place 3.5 % of the purchase price into an account held by the mortgage provider. The 'deposit' will then remain in the account for 7 years. Taxpayers are also to provide an additional guarantee of 5.5 %, however the Government stresses that taxpayers money will only be used during a significant property market crash.

For those of you who wish to buy an older property the scheme will not be available, therefore for those missing out on the scheme Deal Direct can help.

We are whole of market brokers who can source a low deposit and low mortgage rate alternative for first-time property buyers looking for a competitive deal.

The Newcastle Building Society offer first-timer buyers and those with small deposits a choice of deals. A 2 year fixed rate is offered at 5.95 % for 95 % with a £995 fee. A fee free version is also offered at 6.25 per cent, the product comes with a free valuation and £300 cash-back.

The Nottingham Building Society offer a 5 year fixed rate mortgage at 4.74 % for 90 % LTV, the product has no arrangement or valuation fee.

There is something even for those without a deposit. Aldermore offer for 100 % LTV a 2 and 3 year fixed mortgage product offered at 5.98pc with a £1,298 fee. The 100 % deals are open to all borrowers providing a family member will guarantee the deal and accept the additional charge taken against their property equity.