Great news for first-time buyers as the government launches new mortgage indemnity scheme.
Under the scheme the construction industry and taxpayers will act as co-guarantors on new homes bought by existing for first-time buyers.
The government expects the NewBuy scheme to enable first-time buyers to borrow up to 95% of the value of their new homes. Under this new scheme the builder will pay 3.5% of the sale price into a holding account with the mortgage lender for seven years. Then taxpayers will pay additional guarantees of 5.5%, however these monies will only be called upon in the event of a major property crash. This is great news for first-time buyers and the construction industry.