Our mortgage comparison tools have searched the whole market to find and quickly display all the lenders currently participating in the governments Newbuy mortgage scheme. Here you’ll find details of the mortgage products on offer and have the opportunity to compare then with similar products from lenders across the UK.
The NewBuy scheme was created by the government in 2012 to give people a helping hand and make it easier to buy a newly built home.
The scheme allows people to take out a 95% LTV mortgage on a newly built property. This means that they would only need to provide a 5% deposit for their property.
The underpinning premise of the scheme is that the government, along with housing developers, are underwriting mortgages so that there are a number of lenders who are able to provide mortgages to buyers for as little as a 5% deposit.
Should the borrower default on their payments then the housing developers guarantee to pay the mortgage lender 3.5% of the purchase price, and the government will pay 5.5% of the purchase price.
This is an extremely useful scheme for those who are stuck in rental properties because they cannot afford a larger deposit but can afford mortgage repayments for a new property that they want to buy.
There are limitations on who can use the NewBuy scheme so finding out if you are eligible is imperative before applying for a NewBuy scheme mortgage.
Be aware that your housing developer might only work with one mortgage provider so you would not be able to shop around for the best deals, however talk to the experts at Lending Expert to help you work out the best course of action for your mortgage.
Before taking out a NewBuy scheme mortgage, make sure to share the objectives with your mortgage advisor so that you can ensure that the mortgage suitably meets your requirements.
Lending Expert is a mortgage broker and can compare over 1,000 mortgage deals across the UK. Whilst high street banks will typically offer NewBuy scheme mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history.
Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best NewBuy scheme mortgage according to your requirements.
The NewBuy scheme is a government-backed scheme which allows people to get a 95% LTV mortgage on a newly built property that they want to buy.
The scheme helps those that would like to buy a new home but cannot afford a large deposit on it.
It was launched in 2012 and gives an opportunity for many more people to be able to afford a mortgage and buy a newly built house or flat.
Another advantage of this scheme is that many new homes are being built because developers know that they can be bought by more people.
However be aware that a 95% mortgage like with the NewBuy scheme can come with higher interest rates than if you were to save for a larger deposit.
Also only certain building developers are involved with the scheme and you will have to check if your property is eligible with the criteria below.
There are a few criteria to be eligible for the NewBuy scheme, you would be able to take out one of these 95% mortgages if:
There is a similar scheme in Scotland called the MI New Home scheme.
If you and your property are eligible for the NewBuy mortgage scheme then there are a few steps to take…
First contact a participating new-build development or mortgage lender to discuss your eligibility, or contact us at Lending Expert and we can help make sure that the NewBuy scheme is right for you.
If you meet the lender’s affordability and credit criteria, then Lending Expert can find the best 95% mortgage deal on a newly built property that is right for your circumstances. The normal checks by lenders will apply to these mortgages as well.
There are a few simple factors that can help improve your chances of getting a mortgage if you are using the NewBuy scheme:
Although having good credit will make you more likely to be accepted for a NewBuy scheme mortgage, Lending Expert can provide assistance to those with bad credit as well.
It may be unlikely that you could afford a larger deposit if you have bad credit, but talk to the experts at Lending Expert. Using Lending Expert as your mortgage broker will allow you to get the best deal for your financial circumstances, to help you secure a mortgage for your new build property!
Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.
Contact us today to speak to an expert and start comparing first time buyer mortgages to find the best option for you.
We proudly offer NewBuy scheme mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.
Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.
Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation.
Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!