From Adviser Guide:
New Buy Mortgages 1hr
Q: What are the alternatives to a NewBuy mortgage?
There are other schemes for first-time buyers, such as shared equity/ownership, FirstBuy, etc.
NewBuy was designed to address the specific problem of borrowers who can afford the mortgage payments but do not have a large enough deposit.
For any lender Andrew Baddeley-Chappell, head of mortgage strategy and policy on the NewBuy scheme for Nationwide, said NewBuy products were generally the best option where available and where the borrower wishes to purchase the property outright.
Mr Baddeley-Chappell said: “Some lenders do have alternative 90 per cent to 95 per cent products for properties outside the scheme; however these may be limited to first time buyers or existing customers moving home.
“Shared ownership and equity share mortgages such as First Buy can provide an alternative low deposit route to home ownership on new build properties.
“There are also a growing range of alternatives where support can be provided by a family member or a third party such as a local authority.”
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More in this guide
- Q: What is the NewBuy Guarantee?
- Q: Who is eligible for a NewBuy mortgage?
- Q: What properties are eligible for a NewBuy mortgage?
- Q: What are the pros and cons of NewBuy mortgages?
- Q: What are the FSA requirements for NewBuy advice?
- Q: How can I source the best deal?
- Q: What information will the lender require?
- Q: How can I make sure my client gets a decision quickly?