Nationwide has launched a scheme that allows smaller builders to get on its NewBuy Guarantee panel.
To be on a lender’s panel for NewBuy builders are expected to be able to build around 100 properties during three years.
This is because they need to have a range of properties so the risk can be spread to get the capital relief that is a feature of the scheme.
But a number of smaller builders are unable to build the minimum amount of properties to qualify for the deal.
To overcome the problem, Nationwide has introduced a multi-user agreement which allows builders to club together to meet the target.
Andrew Baddeley-Chappell, head of mortgage strategy and policy at Nationwide, adds: “This is for builders that aren’t building on a big enough scale so they in effect pull together.
“This means you begin to allow a larger range of builders into the scheme.”
Fairview New Homes is the first builder to sign up to the multi-user agreement.
When Nationwide launched its NewBuy proposition on March 12 it had agreements with six building firms – Barratt Developments, Taylor Wimpey Homes, Persimmon Homes, Bellway Homes, Bovis Homes and Redrow.
Linden Homes and Crest Nicholson signed up a week later.