Aldermore gets involved with New Buy scheme
Homebuyers have been thrown another lifeline as ‘bank challenger’ Aldermore has joined the government’s NewBuy scheme.
The scheme, set up to help UK first-time buyers to get a new home even if they have not been able to save a sizeable deposit, has so far seen just a handful of large players get involved.
However, Charles Haresnape, managing director of Aldermore Residential Mortgages, said the scheme was “an important initiative to help homebuyers struggling to raise a sufficiently large deposit”.
Initially, Aldermore will be making its NewBuy products available through Fairview New Homes Limited, which has developments located throughout the South and East of England.
Aldermore’s NewBuy mortgage products include the following features: a choice of two or three-year fixed rate at 5.48 per cent, full status loans up to £400,000 and up to 95 per cent loan to value, and a deposit of just 5 per cent.
Gifted deposits are acceptable from close relatives and full gifted deposits are acceptable for first-time buyers, subject to evidence of 12 months’ continuous rental payments
There is a minimum valuation of £75,000 and maximum house valuation of £500,000, and capital and interest loans for house purchase have repayment periods up to 25 years.
Mr Haresnape added: “NewBuy is one of a number of initiatives designed to help breathe life into a moribund housing market and we look forward to rolling out the scheme with additional builder partners over the coming months.”
Housing minister Grant Shapps MP said: “The innovative NewBuy Guarantee scheme is ensuring more and more aspiring homeowners are getting the help they need onto the property ladder.
“NewBuy now covers nearly three quarters of the mortgage market, but I want to go further and see more lenders following their example by signing up to ensure even more of those looking to buy newly-built homes are able to do so with just a fraction of the deposit they would normally require.”
Further details about the NewBuy scheme can be found on Aldermore’s website