Has the Newbuy scheme flopped?
The Government set up the Newbuy scheme to try and help first time buyers take their initial step onto the property ladder. The scheme encourages people to buy newly built homes and allows mortgages to be set up with as little as a 5% deposit.
Unfortunately for the Government, the scheme has only seen five sales go through so far according to the UK’s largest home builders. The scheme under went a lot of criticism when critics deemed the Newbuy scheme as ‘deceptive’ because it actually support’s the construction industry rather than helping first time buyers. The mortgage plan has also been named as a ‘gimmick’ as there are already low deposit deals on the market today.
Many mortgage lenders are still reluctant to take part in the scheme even though it launched two month ago however, Santander is the latest lender to have joined the Newbuy scheme.
On the other hand, home builders claim there are 400 sales going through at the moment and they expect to deliver thousands of sales over the next few years.
If you would like to read our previous blogs about the Newbuy scheme, please see below;
Would you be interested in purchasing a property through the Government’s Newbuy scheme or do you side with the critics?(0) Comments
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