What is it?
The NewBuy scheme exists to encourage buyers and stimulate house-building. It aims to help first-time buyers and “second-steppers”, and, while not restricted to these markets, it can only be used to buy a new-build home. Buyers must be UK citizens or have the right to remain indefinitely in the country.
NewBuy properties must be:
- New-build residential properties being sold for the first time
- Located in England - separate schemes are under consideration in Scotland and Wales
- No more than £500,000 - but there is no cap on income
- Full ownership - NewBuy is not available for shared ownership or shared equity purchases
- Primary homes - NewBuy will not be available for the purchase of second homes or for buy-to-let investments
- Bought with a repayment mortgage - NewBuy does not apply to interest-only policies.
How does a mortgage indemnity work under the NewBuy scheme?
A mortgage indemnity protects your mortgage lender if you fall behind with your mortgage payments, and the lender has to repossess the property and sell it. This can result in a loss to the lender if the property has to be sold for a value lower than the remaining value of the mortgage. ....
- Full ownership - NewBuy is not available for shared ownership or shared equity purchases
- Primary homes - NewBuy will not be available for the purchase of second homes or for buy-to-let investments
- Bought with a repayment mortgage - NewBuy does not apply to interest-only policies.
How does a mortgage indemnity work under the NewBuy scheme?
A mortgage indemnity protects your mortgage lender if you fall behind with your mortgage payments, and the lender has to repossess the property and sell it. This can result in a loss to the lender if the property has to be sold for a value lower than the remaining value of the mortgage. ....
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