NewBuy provides a home buying solution which requires just a 5% deposit and is available to UK citizens buying new build properties priced up to £500,000 as their main home in England. It is being backed by four major high street lenders, Nationwide, Barclays (Woolwich), RBS (NatWest) and Halifax, with more expected to come on board in due course.
Now there is news from the UK that the first house under the NewBuy scheme has been officially sold.
A leading UK house builder has hailed the government backed NewBuy mortgage product as a huge boost for the industry as one of its customers became the first person in the country to buy a home using the package.
‘We are delighted that NewBuy has helped this customer into their brand new Bovis Home and we wish them all the best with their new life in a new property. We promised to hit the ground running with NewBuy and we've done just that by becoming the first house builder in England and Wales to have a customer complete their purchase using the mortgage,’ said chief executive David Ritchie.
‘Higher deposits have undoubtedly hindered the market and this new 5% deposit requirement promises to give the market a major boost especially as it is available to existing homeowners and first-time buyers alike. It's great news for us, but more importantly it's great news for home buyers who now have the chance to realise their aspirations of getting on or moving up the property ladder,’ he added.
Housing Minister Grant Shapps was also delighted that the NewBuy Guarantee has helped someone onto the housing ladder only a matter of weeks after its launch. ‘I wish them all the very best in their new home. With four lenders and nine builders now offering the scheme, thousands of people are set to see their dreams of home ownership become a reality with just a fraction of the deposit that they would otherwise need,’ he said.
Recently we reported about Rightmove's FirstBuy page topping 1 million visitors due to the virtual avalanche of potential first time home buyers storming the site, indication that the public is eager to buy, they just need a little boost to actually do so; through the FirstBuy and NewBuy schemes they are finally able to.