NewBuy - government-backed mortgage indemnity scheme in England
Last updated 18/07/2012: any recent updates in this colour.
The NewBuy scheme aims to assist potential buyers of new-build homes in England, who have less than a 10% deposit, but would otherwise be able to afford monthly repayments.
NewBuy protects the lender in case the borrower falls behind with their mortgage payments and the lender has to repossess the property and sell it. In that event, the scheme covers participating lenders' losses, up to 95% of the sale price, on new-build properties mortgaged between 90 to 95% LTV. These mortgages will be underwritten and administered in the usual way and borrowers are still responsible for their mortgage payments and any shortfall in the normal way.
The CML has worked closely alongside the Home Builders Federation and government in the development of the scheme.
We have more details for potential buyers on the consumer information section of our website. There is also a dedicated NewBuy website. Further information is also available on the government's website.
A similar new-build indemnity scheme is being developed in Scotland by Homes for Scotland, the CML and the Scottish Government. We remain in close contact with relevant parties and will update members with further details in due course.
Further information for CML members is available below.