Halifax launches NewBuy range

The lender has launched a 2-year fixed rate mortgage at 5.99% with a £999 fee and a 2-year fixed rate mortgage at 6.39% with no product fee, both available at 95% LTV.

There is no mortgage account fee payable on either product.

In addition to this, Halifax has also announced the launch of its multi-use cell allowing lower volume builders to participate in the scheme.

Stephen Noakes, mortgage director at Halifax, said: “NewBuy will put the purchase of a new-build home back within the grasp of both first-time buyers and homemovers and will give a much needed boost to housing supply.”

Housing Minister Grant Shapps said:”I’m delighted that Halifax, one of the biggest mortgage lenders on new build properties, will now offer the NewBuy Guarantee to its customers.”

Shapps added that the NewBuy Guarantee was offering help for thousands of people who in many cases had previously given up on the dream of home ownership.

He said: “Thanks to the agreements we are striking with lenders and builders across the industry, those aspiring to get on the property ladder are now able to do so with a fraction of the deposit they would otherwise require.”

The NewBuy scheme was launched on 12 March earlier this year.

Under the scheme, homebuilders will pay 3.5% of the sale price into an account held by the lending bank for seven years.

The government will then provide an additional guarantee of 5.5% of the sale price which will be called upon in the event of a major property crash.