NewBuy Mortgage Indemnity Guarantee is seen as a positive development.
The NewBuy Mortgage Indemnity Guarantee scheme has been hailed as a positive development for the housing market despite any flaws it might have.
The government's Newbuy scheme was launched in an attempt to fund new purchasers deposit shortfalls. Since the launch some have criticised the scheming saying that the initiative is little more than a band aid for a broken leg. Others are more positive saying that with the Government's public purse being close to empty it is perhaps the best that can presently be done.
A number of lenders have been willing to be more positive about the initiative.
At the time of the launch Natwest, Barclays and Nationwide all signed up to the NewBuy Mortgage Indemnity Guarantee scheme. More recently the Halifax has announced it is now to offer NewBuy mortgage deals and with this announcement it is hoped that more lenders will follow suit.
Santander advised at the time of launch they would be considering offering Newbuy products once they have seen how the scheme progresses, we will be looking out for news of a product launch.
The new-build sector sees the NewBuy Mortgage Indemnity Guarantee as a welcome development as it tries to recover after the UK credit crisis. Many more first-time buyers now stand a chance to climb on the property ladder than before the scheme was launched.
New-build properties offer buyers various advantages such as lower repair costs and energy efficiency which just what first-time buyers need. It is hoped that the scheme will help many low deposit holders buy a property, however we will have to wait and see what happens as it is to early to tell how many will actually be helped, although the signs remain positive.
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