Aldermore has become the sixth lender to join the government backed NewBuy scheme with a choice of two and three year fixed rates at 5.48 per cent.
Initially it will be making its NewBuy products available via Fairview New Homes Limited, which has developments located throughout the South and East of England.
The full status loans will be available up to £400,000 and up to 95 per cent LTV with only a 5 per cent deposit required. Gifted deposits are acceptable from close relatives and full gifted deposits are acceptable for first-time buyers, subject to evidence of 12 months continuous rental payments.
Charles Haresnape, managing director of Aldermore Residential Mortgages, says: “Aldermore’s delighted to be the first challenger bank to join the NewBuy scheme, which is an important initiative to help homebuyers struggling to raise a sufficiently large deposit.”
In addition to Aldermore the other five lenders that currently participate in the NewBuy scheme are Barclays (Woolwich), Nationwide, NatWest, Santander and Halifax.
Figures out from the Home Builders Federation in June revealed that since the NewBuy scheme was launched in March some 600 properties had been reserved using the scheme.
Housing minister Grant Shapps welcomed Aldermore’s decision to join the scheme and says that NewBuy now covers nearly three quarters of the mortgage market.
But he says: “I want to go further and see more lenders following their example by signing up to ensure even more of those looking to buy newly-built homes are able to do so with just a fraction of the deposit they would normally require.”
Further details about the NewBuy scheme can be found on Aldermore’s website.