With the launch today of the Government-backed homebuying assistance scheme NewBuy, leading national housebuilder Bovis Homes has signed up with three major high street lenders - Nationwide, Barclays (Woolwich) and RBS (NatWest) - to support them in getting the 95% mortgage into the marketplace.
NewBuy promises to open the door for both first-time buyers and existing homeowners, providing a homebuying solution which requires just a 5% deposit and is available to UK citizens buying new-build properties priced up to £500,000 as their main home in England. The three lenders are the first banks to back the scheme, with more expected to come on board in due course.
"Bovis Homes have given 100% support to the development of this 95% mortgage solution," said Bovis Homes Chief Executive David Ritchie. "We're delighted to have positive agreements with these leading lenders who are backing NewBuy with competitive interest rates.
"We want to hit the ground running with NewBuy and there is a real level of commitment among housebuilders, lenders and Government to make it work for the country's homebuyers.
"We have now delivered a powerful new purchase assistance scheme into the marketplace and it is one that we hope will allow significant numbers of new Bovis Homes customers to realise their aspirations of getting on or moving up the property ladder.
"Higher deposits have undoubtedly been a significant factor in slowing down the market but this new 5% deposit requirement promises to give the market a major boost - especially as it is available to existing homeowners and first-time buyers alike.
"At Bovis Homes we have been proactive in helping to develop low-deposit homebuying solutions with lenders and we were delighted to be able to feed into the process as NewBuy was developed. We believe we now have a strong portfolio of purchase assistance schemes purchase assistance schemes which will allow a wide variety of different buyers to make their move."
NewBuy has been designed by the Home Builders Federation and the Council of Mortgage Lenders; with support from the Government, who have teamed up with individual housebuilders to provide a guarantee for each mortgage, making it reality.
More information on Bovis Homes developments, NewBuy and other purchase assistance packages can be found at www.bovishomes.co.uk