Government’s New Buy Scheme Allows 95% Lending On New Homes

A new Government mortgage indemnity scheme will help people in England gain 95% mortgages for new properties.

The New Buy scheme, which is open to all prospective purchasers, not just first time buyers, will see building firms and the Government act as co-guarantors on new-build homes up to a value of £500,000.

The scheme was announced on the same day that it was confirmed that the “right to buy” discounts offered to social housing tenants are to be extended.

The hope is that both measures will provide a spur for the housing market by encouraging more people to buy new-build flats and houses.  For more details on this story, go to http://www.bbc.co.uk/news/uk-politics-17335711