NewBuy, the scheme that provides a government backed guarantee for mortgages at up to 95 per cent loan to value on new build homes, is to be extended. Builders participating in NewBuy are now offering to buy a customer’s existing property before selling them a newly built home.
NewBuy, which was developed jointly by the Home Builders Federation and Council of Mortgage Lenders, was launched on 12 March 2012. On 25 January 2013, as housing minister Mark Prisk announced the part-exchange offer, the Home Builders Federation reported that there have been 3,000 reservations made through the NewBuy scheme.
The most recently published figures for NewBuy completions showed that 250 home purchases had been completed by 30 June 2012. The next official figures, covering 1 July – 31 December 2012, will be published on 27 March 2013.
