‘Newbuy’ Applications from the Halifax Hit a High!

by Mark Johnston

‘Newbuy’ Applications from the Halifax Hit a High!

The ‘NewBuy’ scheme allows potential buyers to buy a home with a lower deposit than they would normally need. Meaning that they may be able to buy sooner than they thought, without having to save for a long time to build up the deposit that some lenders would otherwise expect. Deposits especially for first time buyers can be as much as 25 per cent.

Initially when the NewBuy scheme was set the government pledged that it would provide some 100,000 new homes. However, in October the Home Buliders Federation (HBF) admitted that only a quarter of this amount will be provided.

In answer to this comment the new housing minister, Mark Prisk, stated that the 100,000 new homes figure was not a target but the maximum liability the Government is willing to accept.

 The Halifax is one such lender that is supporting the Government’s NewBuy scheme, which launched on12 March 2012. The scheme aims to assist buyers who have a deposit of between 5 per cent and 10per cent to buy a new build home. 

The lender says it has so far partnered with 40 builders so far, which it says is up to 10 time the number of some other lenders who are involved in the scheme. 

At the moment the Halifax offers a ‘newbuy’ mortgage which is a 2 year fixed rate at 5.69 per cent, with a 95 per cent loan to value (LTV) ratio. This deal is only available direct and comes with a £995 fee.

However Halifax Intermediaries is to extend its new 7 year no product fee mortgage deal to all NewBuy customers. All Halifax NewBuy customers will be able to access the deal through the Halifax branch network and selected intermediaries.

This particular deal  is a 5.89 per cent fixed rate for seven years which is available to all NewBuy customers, up to 95 per cent loan to value (LTV). It is available to first time buyers and homemovers alike. The difference with this deal however is it comes with no product fee, no mortgage account fee and also £500 cashback.

Ian Wilson, Head of Sales at Halifax Intermediaries, said “We are already leading in the new build market, and this offer will prove to be yet another compelling proposition for brokers’ NewBuy customers. To supplement our unrivalled specialist new build team”.

Halifax has been and continues to be a firm supporter of the house building industry, they currently work alongside 23 of the UK’s leading house builders through the NewBuy scheme, thus providing 1 in 3 mortgages in the scheme.

 Recently the halifax has stated that it has hit the 1,000 mark for NewBuy applications just seven months after it launched its product range for the Government backed scheme.

While the majority, some 76 per cent, of applications have come from first time buyers, around a quarter have also been received from home movers.

A spokeperson from the Halifax said “We constantly review the range to ensure that we continue to lead the market when it comes to NewBuy”.


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