Access to mortgage finance for new properties will be opened up through the NewBuy scheme, it has been claimed.
The Council of Mortgage Lenders (CML) said it is pleased to hear the government is offering support to the initiative, claiming the project could create opportunities for individuals who are creditworthy borrowers but currently lack the means to stump up a large deposit.
According to the organisation, the programme will also serve to bolster house-building in the UK and support jobs in the economy.
Paul Smee, director general of the CML, said: “NewBuy mortgages will help creditworthy borrowers who simply haven’t yet managed to build up a large enough deposit to gain access to finance to buy a newly built home .”
The industry figure explained people need to get to grips with the implications of high loan-to-value borrowing, adding the CML – which is a not-for-profit group that aims to be the central provider of economical and statistical research and information – will strive to offer clear consumer information to those deciding whether this is a suitable home loan option for them.
