An additional lender joins the NewBuy mortgage scheme.
Aldermore is the latest mortgage lender to join the Government's NewBuy mortgage scheme.
The government led scheme was launched to assist small deposit would-be buyers climb on the housing ladder. The Government introduced the scheme because lenders were failing to offer competitive smaller deposit mortgages, which was adversely affecting housing market recovery.
Initially Aldermore has advised that its NewBuy products will only be offered on Fairview New Homes. This will restrict who in the country will be eligible for an Aldermore NewBuy mortgage, as Fairview only build in the south and east of England.
Aldermore’s NewBuy offerings include 2 and 3 year fixed rate deals at 5.48% for a maximum loan of £400,000. This is £100,000 lower than the maximum other lenders offer.
With a small 5% deposit buyers can purchase a new build property. Aldermore advise that mortgage deposits gifted by close family members will be accepted.
A spokesperson on behalf of the lender commented advising Aldermore are pleased to join the Government NewBuy scheme, adding it is looking forward to increasing builder partners over the coming months.
Housing Minister Grant Shapps has said that he hopes more lenders will follow Aldermore's example and join the NewBuy mortgage scheme.
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