Mortgages: NewBuy scheme starts, 95% mortgages available

The government’s NewBuy mortgage scheme, designed to help people get onto the property ladder, has been launched. The NewBuy scheme, which is available for both first time buyers and existing home owners, will only be available for people who want to buy new build homes with the scheme guaranteeing mortgages of up to 95% of the value of the property. Do you have a question about the NewBuy scheme?...

NewBuy mortgage guarantee scheme unveiled

More information has been released about the government’s mortgage guarantee scheme. First trailed last year as part of a package of measures announced by the government, the NewBuy mortgage guarantee scheme, as it is now known, is aimed at kick starting the housing market, which has been subdued for some time. The housing minister, Grant Shapps, has announced that the NewBuy scheme will: • Guarantee mortgages up to 95% loan to value for both first time buyers and home movers • Be available only on new build purchases • Have a maximum purchase price of £500,000...

Use of payday loans to cover mortgage and rental payments rises

New research from the housing charity Shelter has shown millions of people have resorted to unsecured borrowing to meet their monthly mortgage or rental payments over the past year. According to Shelter almost a million people used payday loans to help them pay their mortgage or rent and an additional six million people had to use loans or credit cards. Shelter carried out the research, speaking to more than 4,000 people, following a surge in the number of people telling their debt advisers they had taken out loans to meet mortgage and rental payments. Shelter said the results showed a “spiral of debt ...

Call for long term fixed rate mortgages attacked

The government have been criticised for trying to persuade lenders to offer borrowers long term fixed rate mortgage deals. Speaking to building society chiefs last week the housing minister, Grant Shapps (left), called on lenders to offer 30 year fixed rate mortgages to borrowers. Shapps believes that such long term fixed rates will offer borrowers stability and certainty; he also believes it would help first time buyers. Criticism However, Mr Shapps has been criticised by industry experts who believe that borrowers fear long term fixed rates finding them too inflexible, and often expensive compared to variable rate deals or shorter term fixed rates. ...