OWNING a Redrow home just got a whole lot easier with the news that a 5% deposit may be all that’s needed to secure a traditional looking, quality built, high specification new home.
Redrow is one of the first developers to offer the Government backed NewBuy initiative across its developments in England.
Designed to kick-start the housing market by underwriting mortgages up to 95% of the property’s value at competitive interest rates, NewBuy will be available to customers spending up to £500,000 on a newly built home.
It’s now available on a wide range of Redrow homes, including apartments, terraced houses, semis and detached family homes, mostly from the company’s sought after New Heritage Collection of traditional looking homes with bright, modern and family-friendly interiors.
Lenders participating in the scheme will provide a 95% mortgage for buyers who meet their qualifying criteria; the lenders will be protected by a mortgage indemnity guarantee (MIG) jointly funded by Redrow and the Government.
Redrow will be working with all three lenders who have already announced they will be participating in the scheme – NatWest, Nationwide and Barclays.
Although heralded as a way to get first-time buyers back into the market, NewBuy is open to a variety of buyers. ‘Second steppers’ trapped in their first home by a lack of equity and demand for higher deposits should also benefit; their plight was highlighted last month in a report from Lloyds TSB.
Announcing Redrow’s interim results to the City in February, Redrow plc chairman Steve Morgan said the company had received over 6,000 enquiries about NewBuy.
Welcoming the initiative today, he said: “From the number of enquiries we have received, we know there is huge pent-up demand for new homes. The NewBuy scheme will help unlock that demand by removing some of the biggest obstacles that buyers have faced.
“The scheme will provide an important confidence boost to the housing market and we are delighted to be among the first to make it available.”
In Redrow’s experience, lack of mortgage availability and pressure to find a high deposit have been the biggest barriers to people who want to buy their first home or to move up the property ladder.
Kim Peters, Redrow’s group sales and marketing director, said: “The scale of the NewBuy initiative, the fact it has the Government’s weight behind it and major lenders are on-board, should resolve these issues. We know that people want to buy our homes; now, hopefully, they will have the means.
“We’ll be working with designated lenders and will refer customers to our mortgage specialists for the financial advice they need. We’ll be making the process as simple, swift and straight-forward as possible.”
Visit redrow.co.uk to search for new homes in the area you want to live and to find out more about the NewBuy initiative.