Opinion Former Article

CML publishes crystal marked consumer guide as newbuy scheme launches

The Council of Mortgage Lenders is today publishing a crystal marked consumer factsheet to help home buyers decide whether the NewBuy scheme, launched today, can be of value to them.

This leaflet will support lenders, including Barclays, Nationwide Building Society and NatWest Home Loans Ltd who have today announced that they have successfully managed to design mortgages and agree relationships with builders enabling them to offer mortgages of up to 95% under the scheme. We look forward to more lenders, including Halifax and Santander who have announced plans to do so, joining the scheme over the coming months.

The factsheet is freely available on the CML website and can also be used by lenders in their own consumer information.

The leaflet tells customers who qualifies under the scheme, and how it works. It also gives helpful guidance on the sort of customer who is likely to be able to borrow as a result of its introduction.

The CML believes that NewBuy has the potential to:

  • increase the supply of new housing as builders will have more confidence that mortgages will be available to finance their sale. This will:
  • increase employment in the construction sector
  • enable lenders to lend a higher proportion of the purchase price without the level of risk that would usually arise. As a result, some large lenders will not have to hold such high levels of capital as would normally be required on 90-95% lending
  • enable consumers who could afford to service a mortgage, but cannot fund a high deposit, to have a wider choice of property and options.

While lenders will assess affordability as carefully as usual, those who are good credit risks should find that the scheme can support their aspirations for home-ownership. As with all high loan-to-value loans, borrowers need to understand the implications of having a low level of equity, so the CML guide should make a helpful contribution to consumer understanding.

CML director general Paul Smee commented:

"NewBuy will contribute not just to housing supply, but also to economic growth in the UK. And it will re-open access to many creditworthy borrowers to buying a new build property."


1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 94% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.

2. You can find more information about NewBuy on the Department of Communities and Local Government's website, from the Home Builders Federation's website or from builders taking part in the scheme.

3. The CML's NewBuy consumer factsheet: NewBuy – What you need to know before you go ahead – can be found on the CML website.

Sue Anderson- 020 7438 8924
Bernard Clarke - 020 7438 8923
Jayne Walters - 020 7438 8922

Sue Anderson- 07983 388755
Bernard Clarke - 07983 388672
Jayne Walters - 07983 388764

twitter: www.twitter.com/cmlpressoffice

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