Government Schemes for First Time Buyers
Mortgage Indemnity Guarantee Scheme
Launched March 12th 2012, the NewBuy mortgage indemnity guarantee scheme assists buyers who have a deposit of at least 5 per cent to
buy a new build home. This is a smaller deposit than is normally required. The
scheme will allow more borrowers to secure up to a 95 per cent Loan to Value
mortgage on new build properties (houses and flats) from participating builders
in England. The way it works is that some of the risk of lending to a first time buyer are passed from the mortgage lender to the indemnity fund, created equally by house-builders and the Government.
This scheme has been developed by the Home Builders Federation and Council of Mortgage Lenders (CML) together. The
Government is backing the scheme to help those home buyers who are excluded from sections of the market because they don't have enough of a deposit saved.
FirstRungNow has more information on The NewBuy Scheme
We can also help you by putting you in touch with a specialist first time buyer mortgage advisor