Aldermore first challenger bank to support NewBuy
Aldermore will be making its NewBuy products available via Fairview New Homes, which has developments located throughout the South and East of England.
Charles Haresnape, managing director of Aldermore Residential Mortgages, said: “Aldermore’s delighted to be the first challenger bank to join the NewBuy scheme, which is an important initiative to help homebuyers struggling to raise a sufficiently large deposit.
“NewBuy is one of a number of initiatives designed to help breathe life into a moribund housing market and we look forward to rolling out the scheme with additional builder partners over the coming months.”
Jim Holliday, group sales and marketing director at Fairview New Homes, said: “NewBuy will not only help first-time buyers having difficulties raising the necessary deposit but any aspiring homebuyer who wants to own a new home. We are looking forward to working closely with Aldermore over the coming months to make this scheme available to prospective home buyers.”
Housing minister Grant Shapps said: “I’m delighted that Aldermore will now be offering mortgages through the innovative NewBuy Guarantee, which is ensuring more and more aspiring homeowners are getting the help they need onto the property ladder.
“NewBuy now covers nearly three quarters of the mortgage market, but I want to go further and see more lenders following their example by signing up to ensure even more of those looking to buy newly-built homes are able to do so with just a fraction of the deposit they would normally require.”
Aldermore’s NewBuy mortgage products include a choice of two or three-year fixed rate at 5.48%, full status loans up to £400,000 and up to 95% LTV. Gifted deposits are acceptable from close relatives and full gifted deposits are acceptable for first time buyers, subject to evidence of 12 months continuous rental payments. There is a minimum valuation of £75,000 and maximum of £500,000. Capital and interest loans are for house purchase with repayment periods up to 25 years.