Buyers needing help to raise deposits
SmartNewHomes is calling on the government to continue support of schemes such as NewBuy as buyers continue to struggle to raise deposits.
The launch of the government guaranteed NewBuy scheme saw buyer registrations on the website increase 101% compared to the previous week.
Many first time buyers are lacking the cash for a deposit and facing difficulty accessing high loan to value mortgages.
The NewBuy scheme is helping tens of thousands of buyers to bridge the deposit gap and get on the property ladder.
NewBuy is available at selected new home developments in England and involves the housebuilder and government underwriting mortgages of up to 95%.
This means buyers require a deposit of just 5%. NewBuy is available to all buyers on new build properties up to the value of £500,000.
Steven Lees, Director at SmartNewHomes, said: “NewBuy has helped unlock pent up demand from buyers with many rushing to take advantage of the scheme which offers the cash poor but perfectly credit-worthy a much needed helping hand up the property ladder.
“With the mortgage drought set to continue, innovative schemes such as this will continue to play an important part in helping to get the housing market moving.”
SmartNewHomes hope the new housing minister Mark Prisk will extend the NewBuy budget further.