The Council of Mortgage Lenders is pleased that NewBuy will be launching with the underpinning of government support to supplement the builder-funded scheme.
The scheme will make a welcome contribution to increasing the flow of house-building, supporting jobs in the economy, and opening up access to mortgage finance for new build property to creditworthy borrowers who simply lack a large deposit.
NewBuy enables lenders to undertake higher loan-to-value lending with less risk for creditworthy borrowers who can afford the repayments but who simply have not accumulated a large enough deposit to obtain a mortgage under the usual lending terms. Lenders will not be relaxing their affordability criteria, but the scheme will enable those who can afford the repayments to have the choice to buy a home sooner than might otherwise be possible.
Paul Smee, CML director general, said:
“NewBuy mortgages will help creditworthy borrowers who simply haven’t yet managed to build up a large enough deposit to gain access to finance to buy a newly built home. NewBuy is good news for home-buyers, and potentially good news for jobs and the wider economy too. Borrowers need to understand the implications of high loan-to-value borrowing, so we will be supporting the initiative with clear consumer information to help people decide whether NewBuy borrowing is an attractive option for them.”
Head of member and external relations
tel: 020 7438 8924 mob 07983 388755
P Before printing, think about the environment
We have a full and busy events schedule in 2012, keeping the mortgage industry up-to-date on the various important issues happening in the market. View the full list and book at www.cml.org.uk/events.