NewBuy mortgage guarantee scheme - high street lenders sign up.
Three high-street banks have already signed up to the Government's NewBuy mortgage guarantee scheme which was launched today. The state backed mortgage indemnity scheme aims to stimulate the economy and building industry by creating movement in the housing market .
The Government's NewBuy guarantee scheme, which was announced last year, is a means of getting first-time property buyers back into the housing market.
Deal Direct can help first time buyers
get the best mortgage deal available in the UK.
Nationwide, Barclays Bank and Natwest are the first lenders to announce they will offer mortgage products through the scheme to home-buyers with a low 5 per cent deposit.
Halifax has said that it plans to join and will begin to offer products through the NewBuy mortgage guarantee scheme from April. Santander also plan to join but are delaying offering any mortgage products until this summer.
Under the new scheme, lenders are protected against losses caused by falling house prices. House-builders provide a deposit of 3.5 % of the property’s value and the government provide an additional guarantee of 5.5 %.
The scheme aims to help around 100,000 home-buyers with just a 5 per cent deposit, purchase a new build home up to a maximum value of £500,000.
Natwest is the most competitive of the lenders who have announced their NewBuy mortgage guarantee rates. Natwest offer two fixed rate options, either a 2 year fixed rate at 4.29 per cent or a 5 year fixed rate at 4.99 per cent, both products have a £499 arrangement fee.
Natwest advise that these rates are only available for the purchase of a new-build property through Bellway, Linden Homes, Baratt, Bovis, Redrow, Persimmon and Taylor Wimpey.
Contact Deal Direct for details of lenders NewBuy mortgage guarantee rates. We are up to date on all lenders offers and are best placed to get you the most competitive deal in the UK today.
