NewBuy mortgage scheme needs to be more effective says Labour.
So far 1500 homes have been reserved under the NewBuy mortgage scheme, a figure which the Labour shadow housing minister has described as modest.
The shadow housing minister, Jack Dromey recently spoke at a Social Policy Forum conference in Westminster saying that while the scheme is a step in the right direction, the results so far have not been significant.
He added that Labour plans to have a meeting with UK home builders to seek ways that the scheme can be improved upon. Labour says that it has some some interesting ideas to propose for the scheme. The shadow housing minister went on to say that while the sheme is useful, more should be done to make it truly effective.
Redrow Homes has also criticised the scheme, saying that so far it has had a disappointing impact. According to the house builder, NewBuy mortgage rates are set too high which is hampering take up of the scheme.
In the first 3 months reservations were 600 and in the three months up to the end of September this increased to almost 1500.
The scheme is for new build property only, therefore if you are looking to buy an older property you will not be eligible for a NewBuy mortgage.
If you are small deposit would-be buyer looking for a mortgage, you are advised to call Deal Direct for an up to date mortgage market comparison.
Call Deal Direct for a quote.
