NewBuy – Buy a home with a 95% mortgage

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What is NewBuy?

Are you thinking of buying a new home, but struggling to save a large enough deposit required to secure a mortgage? If you’re a UK citizen then you may qualify for a mortgage under the government-backed NewBuy scheme.

NewBuy is a new initiative which aims to help home-buyers who may have found themselves unable to move up or step onto the housing ladder, secure up to a 95% Loan to Value mortgage on new build properties from participating builders in England.

Which properties are eligible for NewBuy?

To qualify for NewBuy, properties have to be:

  • New build – residential properties being sold for the first time or for the first time in the current form;
  • Priced up to £500k – but there is no cap on income;
  • Full ownership – NewBuy is not available for shared ownership or shared equity purchase;
  • Primary homes – not available for the purchase of second homes, for investors of for buy-to-let purchases;
  • This scheme only applies to capital repayment mortgages, not interest-only mortgages;
  • You must not be receiving help with your deposit from a local authority or other public body;
  • This scheme applies to England only; separate schemes are under consideration in Scotland and Wales.
  • Do I qualify for NewBuy?

    Buyers have to be:

  • UK citizens and those with a right to remain indefinitely in the country.
  • New home buyers wishing to take advantage of the scheme will need to qualify for a mortgage with a mortgage lender in the usual way and be subject to the lender’s normal assessment criteria.

    Where can I find NewBuy property?


    What is an indemnity and what does it mean for you?

    The scheme will be operated by the home building industry and mortgage lenders – the banks and building societies – working in partnership with the Government. The scheme is designed to protect the lenders against losses in the unfortunate event of a repossession, which is why they are prepared to make 90-95% mortgages available. It is important to note that this does not change a borrower’s responsibility to repay the mortgage in any way.

    For more information and to find out if you're eligible for a NewBuy property look out for red NewBuy stickers on Rightmove and speak to the developer marketing the property for details.

    32 Responses to “NewBuy – Buy a home with a 95% mortgage”

    1. Shaunaingram Says:

      Does this only apply to new build properties and where can I find more information.

    2. Juliane Says:

      I am interested in the newbuy 95% mortgage and would like more information.

      thank you.

    3. ian Says:

      Have a flat that’s mine on mortgage ,with lease on market at moment will they take it of me . +r some help to get rid of it

    4. Jason benn Says:

      Misleading- first it states it is to help those unable to move up, then it states later that this is not available for the purchase of a second home. I will continue to live in my apartment with small child that I cannot sell! Whilst first time buyers e.g. Couples with no children get the help and support from the government. Thanks whilst I continue to save up my 25 – 30% deposit to allow me to move on.

    5. Karen Wyeth Says:

      Lending 95% up to £500,000 loans! Have lenders learned nothing from the real estate meltdown in the USA? Turning homeowners into indentured workers trying to pay mortgages that they can not really afford f or properties that are artificially price inflated. I for one, will NOT buy a property in Britain until they fall to an affordable price for average working people. Prices have a LONG way to go down before that happens.

    6. Jean Says:

      I do not have a comment, but I have a question. Presently I am unemployed and I am having difficulty obtaining a rental property because of the prejudice against people on Housing Benefits. Landlords are asking for exorbitant deposits which can be used as a deposit on a new property. Would I be able to participate in this Newbuy Scheme? Waiting for your response. Thank you.

    7. Helen Says:

      This doesnt make any sense when the houses it shows me i cant get as Orbits requirements are that a couple can only get a 2 bed house and there shared ownership and this says otherwise.
      Mixed requirements…..

      Its not helping us get on the housing market as the 95% mortagage that they will give you, you have to have A*Credit history. I havent had any bad credit in the last 9 years and even me they doubt will supply it to.
      I have no defaults or CCJ. One or two late payments about 9years ago.

      i think the goverment need to bring back Excempted Stamp Duty for first time buyers i think that will make a hell of a difference.

    8. Cara Says:

      I live in a small 2 bed mid terrace with 2 children and we have no garden. We are in negagtive equity with our home because of the housing market.
      Our house would be an ideal first time purchase (as it was for us – 6 years ago!)
      The government have all these offers for 1st time buyers, what about those of us already on the property ladder, who can’t afford massive deposits to buy a bigger home. Majority of people I know can’t buy a bigger home because there is no incentive for families to move on to longer term properties/family homes.
      Why not give us something to help us move, instead of 1st time buyers!!

    9. rashed Says:

      i intend to sell my house would i be ok to by new on 95%

    10. Ricardo Says:

      Where can I find more information about:
      “Buyers have to be: UK citizens and those with a right to remain indefinitely in the country.”
      UK or EU citizens married with foreigner with legal 5 years family member residence visa can apply to this type of mortgage?

    11. Darren Morrison Says:

      Very interested but would like to chat to a advisor to get more information

    12. Fluffy Says:

      Does this apply to Buy To Let?

    13. Clare Alford Says:

      I agree with all of the above. After watching Matt Damion
      the inside job it is worrying that we could end up like the USA
      Which started the global economic crisis. We have
      A shared ownership property and it is a rip off
      Having to pay rent when we do not use their services
      We could use the rent money towards our mortgage
      Which was given to us on a really high rate and now we need at
      Least 15k just to sell it and move! Overall the price
      Of property needs to come down in th Uk and stamp duty
      Should be scrapped

    14. Tom Says:

      Firstly, for those of you moaning that because you have children this entitles you to a larger, cheaper home – you chose to have children! If you could not afford to house them etc perhaps that is something you should have thought about. I cannot afford children and I am saving for a deposit, this scheme is a bit of a swizzle as bankks will actually give a 95% deposit right now anyway.

    15. Sonia Enver Says:

      I an interested as I have a small proberty which I am try to sell for a three bed but am having trouble selling it for a reasonable price in order for me to buy a three bed in the Enfield EN1 area, would like advice

    16. Louise Says:

      From what I understand, you dont have to be a first time buyer to qualify for this, ‘Second home’ refers to if you are intending to buy an additional property (and keep your existing one). For my personal situation (having no equity in my house and wanting to move in the next year, so not enough chance to save a big deposit ) then this could be a good opportunity.

    17. stephanie yates Says:

      i would like to know the same as jean on this list i am a full time carer who is looking for work
      and would like to know if i can go for this deal due to landlords are really making it hard for anyone to go into rental because they do not take on housing benefits
      thank you

    18. Julie Howarth Says:


      Can you send me more information on the newbuy 95% mortgage and
      the goveremnt help on the deposit.


    19. Amanda hyde Says:

      Would like more info on this

    20. Steve Says:

      To answer a few questions and points:

      This is not just for first time buyers. The comment about second homes is about buying as an investment or holiday home (you cannot do this). If you are moving up the ladder you can sell you current house and move into a new build.

      The usual lending criteria applies, so if you are unemployed you will not get a mortgage on this scheme.

    21. Rob Moore (Estate Agent) Says:

      FAO Jason Benn,Jean,Juliane,Shaunaingram,
      I have been reading your comments and queries and wish to offer my expertise. Firstly, Jason Benn, the New Buy scheme is open to you, as long as you sell your current home. The second home you refer to is to stop buyers buying a 2nd home as an investment and not selling their current home. If anyone has any queries please contact me via e-mail at
      Kind Regards
      Rob Moore
      Branch Manager
      Shipways Estate Agents

    22. Matthew Says:

      Can you send me more information on the newbuy 95% mortgage and
      the goveremnt help on the deposit. and do i qualify even if i m a maltese citizen

    23. Jill Collier Says:

      The best information is available on the government website: Just search for NewBuy.
      Jason, I think it may be available for second homes after all. Good luck.

    24. Louanne Says:

      The scheme is ok and a good idea but some of the prices are way over the top! For some of the areas that thy are built in. Me and partner went to go look at a new build and see about the first build scheme, they don’t do a lot of 2 be houses and so we said we would be interested in a 3. We was then told that unless we are able to kind of prove that we would be starting a family in the next Couple of years we weren’t forced to get a 3 bed! We are engage and set to get marry in 2014 the date is booked etc and we are getting a mortgage together! What more proof do they want? As for the able to get a house upto £500,000 ain’t this the reason the country is the way it is because people were handed mortgages they couldn’t really afford?!

    25. Liz Says:

      I would really like it explained, how someone who can only manage a 5% deposit, on what has become overpriced property – when you take into consideration the ratio between income and property prices – can afford to ever own it.

      Did we not get into this mess in the first place, by banks lending money to people buying houses out of their price range?

      Wages and house prices need to come into line with each other – as they did prior to 1997 – to right this situation. Sadly there is too much big money invested in the BTL and the property developing business to see that happen.

      Better to rip off savers with a puny interest rate to fund hare-brained schemes which will be accepted, as many people are not numerate enough to work out the pitfalls.

    26. Jonathan Says:

      A government-backed scheme aka tax payer’s money to help the building industry, NOT the homeless, in my opinion. House prices need to be realistic. Time was when almost everyone could buy a dwelling to make into a home. If house prices don’t drop to within the average person’s purse, then a good many council houses will have to get built!

    27. Matt Says:

      I take this this means you need to have a 5% deposit saved?

    28. deborah Says:

      This sounds great but there has to be a catch!? I disagree with Cara,you have a home,even if its too small for you or not I’m sick of paying other peoples mortgages!at least your money is going towards a bigger picture and future for your kids! I’m paying for someone else’s kids future,what about my own daughter!? So you see that’s why im a bit annoyed with your comment…. I have always wanted to get on to the property ladder and even if its bad at the moment you are 1 big step ahead of most people in the U.K so be grateful!

    29. Henry Says:

      Amazing confusion over this article, people not reading the article and then commenting with strange questions already answered above. Best not get a mortgage if you can’t read a simple document !

    30. Mojisola meduoye Says:

      I am employed and have been registered for the Key workers for share accomodation although i do not mind buying my own property but saving up for deposit is my problem as well but i should be able to afford 5% deposit,i desperately need an accomodation as my landlord want want me out due to refurbishment, i never have problem with my rental payment. will i be qualified to get a mortgage? and please i will need more information.

    31. Shon glyn jones Says:

      Well said Deborah! Similar situation here.

    32. cagney Says:

      could i sell house even with a 54 year lease

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