The scheme already provides buyers with 95% mortgages on newly built properties. It means that instead of a typical buyer having to provide a deposit of £20,000 on a £100,000 home, which many lenders demand, they only have to provide £5,000.
Now the scheme is being extended so that buyers will be able to trade in their old property for a newly-built home.
The change came into effect on 25 January. Builders offering the NewBuy scheme can now buy the customer’s existing property before selling them a new home.
Housing Minister Mark Prisk said: “The NewBuy scheme is unique in the industry in that it not only supports aspiring homeowners, but also those looking to move up the property ladder.
“The part-exchange offer to second-steppers will help them make that move, getting the housing market moving and ensuring those looking to move to a bigger home more suited to their needs can do so.”
The NewBuy part-exchange service is available for the first 6 months of this year. It may be extended subject to demand.
Stewart Baseley, Executive Chairman of the Home Builders Federation, said: “NewBuy means people can buy a new home with a 5% deposit and is now a real option for those who thought they couldn’t get on to the property ladder.
“Allowing people to part-exchange their existing homes and buy a new one using NewBuy will also be a huge boost for those families stuck in their existing homes, unable to sell and without the required deposit to move.”
Please contact Ingrid Hindle in our Warminster office on 01985 214444 or Sandra Smith in Westbury on 01373 865577 if you would like advice on buying or selling a home. Or email ihindle@mulaw.co.uk or ssmith@mulaw.co.uk.
01985 214 444
enquiries@middletonslegal.com