Colin
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Registered: 4th Apr 02
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Anyone up on this at all?
Me & the wumen went to view a new build yesterday and the saleswoman mentioned this but didnt know much really at all.
I found this on the house builders website, but its still not very clear :
NewBuy - Government Backed 95% Mortgages
NewBuy Scheme
The first ever government-backed mortgage indemnity scheme is now available. The NewBuy Guarantee scheme aims to help homebuyers who only have access to a 5% deposit.
Under the new programme, developed jointly by the Council of Mortgage Lenders and Home Builders Federation (HBF), 95% percent mortgages will be made available to existing homeowners as well as first-time buyers (FTBs) on new-build properties (houses and apartments) worth up to £500,000.
This is welcome news for first-time buyers in the capital and surrounding areas, where the average price of housing is much higher than anywhere else in the UK and also for existing homeowners who are looking to move up the property ladder into larger homes - our part exchange scheme is available through select lenders.
The typical deposit needed to buy a home is 20 per cent; so for a home worth £200,000 buyers using the NewBuy scheme need a deposit of just £10,000 rather than £40,000.
Charles Church will have lending arrangements with Santander, Halifax, Woolwich, Nationwide and NatWest for NewBuy offering a wide selection of options to homebuyers.
NewBuy Eligibility Criteria
The NewBuy scheme is only available to purchasers of new build houses or apartments, priced up to £500,000
Purchasers must be UK citizens or those with a right to remain indefinitely in the country
The NewBuy scheme is only open to those purchasing their principal home
Purchasers may be first-time buyers or those already on the property ladder
The NewBuy scheme is not available for shared ownership or shared equity purchases
Getting started with NewBuy
Use our search facility and once you have found a new home that you are interested in contact or visit the development for further information.
Living in Scotland?
A similar scheme - MI New Home - is available for house purchasers in Scotland.
Terms and Conditions
NewBuy scheme is available subject to status, terms and conditions and using a Charles Church-nominated solicitor and/or financial adviser as necessary. NewBuy will not be available in conjunction with any other financial incentives, such as deposit paid, legal fees paid or stamp duty paid. Charles Church cannot advise you on a mortgage. This particular mortgage also requires a clean credit record. Written details available on request. YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
Basically the house I looked at was £277k & there offering me a 10k discount and full PX.
However with the above deal the woman said they can do the house for £250k. I'd only need a 12.5k deposit and stamp duty would be 1% instead of 3%. Ultimately meaning i'd be able to keep my current house to rent out, with the view of selling it eventually when its worth more 5-10yrs!?
Does anyone know if that sounds right? 
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Russ
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Registered: 14th Mar 04
Location: Armchair
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You may find you can't buy it if you already have one mortgage other wise loads of people would just buy to let them
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Colin
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Registered: 4th Apr 02
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Only thing I can see slightly hinting this is - 'The NewBuy scheme is only open to those purchasing their principal home'
So what i'd need to make current home BTL, or declare its not a main residence, like the mp's do to avoid cap gains tax.
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Colin
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Registered: 4th Apr 02
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Im 70% LTV on current home is that enough to swap to a BTL?
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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First buy is FTB only. Might be able to loophole it if your missus hasn't been on a mtg before.
Corsa 2.0 16v Vegas - Sold
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Colin
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Registered: 4th Apr 02
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This is newbuy, not firstbuy.
Under the new programme, developed jointly by the Council of Mortgage Lenders and Home Builders Federation (HBF), 95% percent mortgages will be made available to existing homeowners as well as first-time buyers (FTBs) on new-build properties (houses and apartments) worth up to £500,000.
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Colin
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Registered: 4th Apr 02
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I'd normally be dead against a 95% mortgage, however the plan would be to rent out the current one making a few hundred a month then once it goes up in value sell it and dump the liquid into 95% one.
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VrsTurbo
Premium Member
Registered: 8th Jun 10
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You will earn too much money to be apart of the scheme iirc
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Russ
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Registered: 14th Mar 04
Location: Armchair
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I doubt it if its allowing people to get a mortgage for 475k!
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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CGT on any profit on the second home once sold don't forget.
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Colin
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Registered: 4th Apr 02
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Can you not get round that by swapping your primary home to the one you sell and if not what's the threshold for tax?
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Russ
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Registered: 14th Mar 04
Location: Armchair
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i thought new buy was England only? scotland is my new home, or something and only goes upto 250k homes
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Toby
Premium Member
Registered: 29th Nov 05
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quote:
Originally posted by Colin
Can you not get round that by swapping your primary home to the one you sell and if not what's the threshold for tax?
Yes but needs to be for 6 months plus
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Toby
Premium Member
Registered: 29th Nov 05
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quote:
Originally posted by Colin
Can you not get round that by swapping your primary home to the one you sell and if not what's the threshold for tax?
Yes but needs to be for 6 months plus
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Toby
Premium Member
Registered: 29th Nov 05
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oh and principal its a good idea. BTL mortgages usually require a 25% deposit and the fee's are extortionate so you need to make sure your committed long term
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M2RTY
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Registered: 25th May 01
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we couldnt get around the FTB stamp duty holiday even if only 1 of us hadnt had a home in our name before, so i put it in my lass's name and then added me on afterwards - might be similar here?
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stuartmitchell
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Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
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Could put the new house in your Mrs name if she has not boughta property already? 
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Colin
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Registered: 4th Apr 02
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I dont trust wumen!
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stuartmitchell
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Registered: 24th Apr 04
Location: Kirkliston, Edinburgh
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Good point mate 
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M2RTY
Member
Registered: 25th May 01
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go down as a dependant with interest, her name on deeds, signed by solicitor, sorted and covered!
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whitter45
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Registered: 15th Nov 02
Location: Norton
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Colin - how much is your curent mortgage as I thought it was around the 1k mark
Cant see you making money on renting it out if you mortgage is that high
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Colin
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Registered: 4th Apr 02
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£540, rent for 700-800.
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Toby
Premium Member
Registered: 29th Nov 05
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interest rates are higher on BTL mortgages so bear that in mind but even if it costs you each month, small price to pay for an investment
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sc0ott
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Registered: 16th Feb 09
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What house builder did you visit?
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Colin
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Registered: 4th Apr 02
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It was Charles Church. Decided not to bother pursueing it now though.
Placed a deposit off plan on a new Kier house instead, however it won't be ready for around 12 months.
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