With mortgage lenders demanding large deposits from first-time buyers and movers looking for the best interest rates, over the past few years many people who have wanted to move home have not been able to do so. Those looking for a first home have often been stuck in increasingly expensive property to rent while they try to save a lump sum to put down on a home of their own.
The NewBuy scheme, launched by the government in March 2012, is intended to make purchasing easier for creditworthy homebuyers by making 95% loan-to-value mortgages available to them - not just first-time buyers, but those looking to move up the property ladder too. Redrow Homes was one of the first housebuilders to sign up to this scheme and with only a 5% deposit, homebuyers can now consider a range of new homes in Yorkshire that are on sale at the company's developments.
Patsy Aicken, sales director for Redrow Homes (Yorkshire), says: "Between the various developments we have a good choice of homes available. We have properties that are perfect for individuals, couples, families and even friends buying together. Their traditional looking Arts & Crafts influenced exteriors and bright modern, family-friendly interiors mean they practically sell themselves. And thanks to the offer of 95% mortgages there's a real opportunity for those without substantial savings to own one of our stylish new homes."
Among the locations that purchasers can find NewBuy available on a range of homes valued up to £500,000 are:
Patsy continues: "Research published by the Halifax this week suggests that the average 20- to 45-year-old looking to buy a home has £9,420 in savings. The good news is that this would be more than enough to secure a 95% mortgage to purchase a three-bedroom home at Wheatley Chase."
She also mentions that NewBuy can help those who don't have a substantial amount of equity in the property they are selling: "[NewBuy] may offer a ‘rent-to-buy' option for those who haven't sold their current home. They can consider renting out their existing property by converting to a buy-to-let mortgage and then use NewBuy and a 95% mortgage to buy one of our brand new homes," she adds.