On 12 March 2012 the Government announced the introduction of
the New Buy Scheme which assists buyers who have a deposit of at
least 5% to purchase a newbuild property.
The effect of this scheme is that it will make available to
buyers the possibility of securing 95% Loan to Value mortgages on
newbuild houses and flats.
In order to be eligible for the New Buy Scheme then a buyer must
purchase a newbuild property in England, the price of the property
must be less than £500,000, it cannot be a shared equity
property, it cannot be a buy to let property and the buyer must be
a UK citizen.
The Scheme works in that a housebuilder will put 3.5% of the
sale price into an indemnity fund for each property sold through
the Scheme and the Government will provide 5.5% guarantee. If then
the property is repossessed the lender will be able to recover from
The benefits of the new Scheme are that the buyer is able to
gain access to greater levels of borrowing, the lender has greater
protection, the builder is able to sell its properties and the
Government can encourage the supply of more homes.
At the time of writing Barclays, Nationwide and Natwest are
lenders which are part of this scheme.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The FCA has published the decision notice it has issued to Standard Bank plc, fining it £7,640,400 for failings relating to its anti-money laundering (AML) policies and procedures over corporate customers connected to politically exposed persons (PEPs).
Fiona Le Poidevin, Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry, explains why Guernsey remains an attractive fund domicile amidst the introduction of AIFMD.
A recent case revisited the principles established in a 1997 judgment that where a spouse has granted a security for his or her spouse's business debt, creditors have a duty to warn guarantors of the consequences of entering into the proposed arrangements, and to advise them to take independent legal advice.
On 29 January 2014 the European Commission published a proposal for a regulation of the European Parliament and of the Council "on structural measures improving the resilience of EU credit institutions"
The Risk and Regulation Monthly provides a summary of the key International, European and UK regulatory developments and pertinent regulatory activity affecting the Financial Services industry.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”