How does newbuy work

This means you will have the choice of the Help to Buy equity loan or a government indemnity. Both NewBuy and the second part of Help to Buy protect the lender against defaults and give them more confidence to lend at small deposits. But you should also think about what you are committing by taking a Help to Buy equity loan. For example, if you took a NewBuy mortgage, you only have to worry about repaying the loan each month, while the Help to Buy equity loan from the government will have an added rate to pay once the five-year interest-free period ends.

You may also be able to avoid both NewBuy and Help to Buy and find better deals in shared ownership schemes or guarantor style schemes.

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Will borrowers with rented solar panels have trouble remortgaging? Do you want to comment on this article? You need to be signed in for this feature. Terms of use Privacy policy Disclaimer. To combat this the builder pays in 3. If you think NewBuy could assist your purchase of a new build home and would like to apply, you should contact either a participating new-build development or mortgage lender to discuss eligibility.

Alternatively, you can approach a mortgage intermediary who is introducing mortgages under the scheme.