Newbuy’s new part-exchange
THE government’s NewBuy scheme has added a partexchange feature to its offering after reaching 3,000 reservations. NewBuy allows first-time buyers and home movers to buy a newbuild property with a 95 per cent mortgage that is underwritten by the government and developers to encourage bank lending.
New figures from the Home Builders Federation show that the reservation rate in the first three weeks of 2013 is running at the highest levels since the scheme was launched last March.
The new deal, available until June, means that home movers with only a five per cent deposit will now be able to use partexchange existing homes in order to buy a new-build property worth up to £500,000.