Barclays increases support for New Build Sector
From 24th November, Barclays will allow a builder’s cash incentive contribution to be included as part of the 15% homebuyer’s deposit requirements, subject to a maximum cap on all cash incentives of 5% of the purchase price or valuation, whichever is lower.
This change means that the purchase price will no longer be reduced by the amount of the builder’s incentive, as was previously the case. The maximum loan value available for New Build properties (both flats and houses) is 85%.
Andy Gray, managing director of mortgages for Barclays, said: “Responding to feedback from the industry, we have reviewed our New Build policy and have updated it to allow the use of a builder’s cash incentive within a customer’s deposit. We are making these changes to simplify our process as part of a renewed focus on, and commitment to, this important sector of the housing market.”