Aldermore in NewBuy talks
Aldermore is in talks with the Council of Mortgage Lenders about joining the government-backed NewBuy scheme.
Charles Haresnape, managing director of Aldermore residential mortgages, confirmed the lender intends to launch a NewBuy deal but had to wait until the large banks had hit the ground with the scheme.
He said: “Small lenders weren’t even able to have that conversation until the big guys got behind it.
“Only now can small lenders like us have those conversations with the likes of the CML. Hopefully now we can encourage more smaller to medium size lenders join the scheme.”
Brokers specialising in new build welcomed Aldermore’s commitment to the scheme but said more lenders had to join the fray to encourage better pricing.
After Lloyds Banking Group launched its NewBuy range with rates around 6% NatWest, Barclays and Nationwide have all raised their rates.
Richard Stone, director of new build specialist broker SPF Sherwins, said uncompetitive pricing was part of what was holding the scheme back.
He said: “NewBuy is just one of a portfolio of products. A number of small to medium sized lenders are already supporting other new build products.
“The likes of Leeds and Kent Reliance are heavily supporting the shared ownership market and they’re not going to jump ship any time soon. They’re already in the market.”
But Haresnape added that he believed other smaller lenders were in discussion with the CML about joining the NewBuy scheme.
“Yes the CML is active in talking to its membership. They are being pro-active and it’s pretty hard going for them to be fair,” he said.
A spokeswoman for the CML said: “We are continuing to have discussions with a number of lenders but it will be up to them to decide when to make that public.”
NewBuy launched in March offering 95% loan to value mortgages on new-build properties against a mortgage indemnity guarantee funded jointly by builders and the government.
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