Expertly compared by Jason Bailey

Products Updated October 28, 2021


Newbuy Mortgages

Our mortgage comparison tools have searched the whole market to find and quickly display all the lenders currently participating in the governments Newbuy mortgage scheme. Here you’ll find details of the mortgage products on offer and have the opportunity to compare then with similar products from lenders across the UK.


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Simple application process - broker was kind and offered advice.

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Start Your NewBuy Scheme Mortgage Application Today With Lending Expert!

The NewBuy scheme was created by the government in 2012 to give people a helping hand and make it easier to buy a newly built home.

The scheme allows people to take out a 95% LTV mortgage on a newly built property. This means that they would only need to provide a 5% deposit for their property.

The underpinning premise of the scheme is that the government, along with housing developers, are underwriting mortgages so that there are a number of lenders who are able to provide mortgages to buyers for as little as a 5% deposit.

Should the borrower default on their payments then the housing developers guarantee to pay the mortgage lender 3.5% of the purchase price, and the government will pay 5.5% of the purchase price.

This is an extremely useful scheme for those who are stuck in rental properties because they cannot afford a larger deposit but can afford mortgage repayments for a new property that they want to buy.

There are limitations on who can use the NewBuy scheme so finding out if you are eligible is imperative before applying for a NewBuy scheme mortgage.

Be aware that your housing developer might only work with one mortgage provider so you would not be able to shop around for the best deals, however talk to the experts at Lending Expert to help you work out the best course of action for your mortgage.

Before taking out a NewBuy scheme mortgage, make sure to share the objectives with your mortgage advisor so that you can ensure that the mortgage suitably meets your requirements.

Lending Expert is a mortgage broker and can compare over 1,000 mortgage deals across the UK. Whilst high street banks will typically offer NewBuy scheme mortgages too, we can help find the best option for you with rates from 1.39% per month, whether you are looking for interest only, fixed, variable, tracker or have a bad credit history.

Start by clicking on ‘Check my Eligibility’ below and enter some basic details about you and your property – and Lending Expert will be able to help you find the best NewBuy scheme mortgage according to your requirements.


Key Features

  • Rates from 1.39% per month.
  • Borrow up to £2 million.
  • Loan Term – 1 to 25 years or upon request.
  • 5% Deposit.
  • Only available on newly built homes.
  • Interest only, fixed, tracker mortgages available.
  • Free tool to compare NewBuy scheme mortgages.


What Is the NewBuy Scheme?

The NewBuy scheme is a government-backed scheme which allows people to get a 95% LTV mortgage on a newly built property that they want to buy.

The scheme helps those that would like to buy a new home but cannot afford a large deposit on it.

It was launched in 2012 and gives an opportunity for many more people to be able to afford a mortgage and buy a newly built house or flat.

Another advantage of this scheme is that many new homes are being built because developers know that they can be bought by more people.

However be aware that a 95% mortgage like with the NewBuy scheme can come with higher interest rates than if you were to save for a larger deposit.

Also only certain building developers are involved with the scheme and you will have to check if your property is eligible with the criteria below.


Am I Eligible for the NewBuy Scheme?

There are a few criteria to be eligible for the NewBuy scheme, you would be able to take out one of these 95% mortgages if:

  • The property is being sold for the first time, or it is the first time sale of a conversion, for example, a new flat that used to be part of a house.
  • The property needs to be priced at £500,000 or less.
  • The property must be the buyers only home and cannot be used for sub-letting.
  • The property has to have been built by a builder taking part in the scheme and be built in England.
  • The buyer will still need a mortgage and have to fit the mortgage lender’s criteria, and the mortgage is in no way guaranteed, and it cannot be an interest-only mortgage.
  • NewBuy does not apply to interest-only mortgages and cannot be used in conjunction with any other publicly funded mortgage scheme.

There is a similar scheme in Scotland called the MI New Home scheme.



How Do I Apply for the NewBuy Mortgage Scheme?

If you and your property are eligible for the NewBuy mortgage scheme then there are a few steps to take…

First contact a participating new-build development or mortgage lender to discuss your eligibility, or contact us at Lending Expert and we can help make sure that the NewBuy scheme is right for you.

If you meet the lender’s affordability and credit criteria, then Lending Expert can find the best 95% mortgage deal on a newly built property that is right for your circumstances. The normal checks by lenders will apply to these mortgages as well.


How Can I Improve My Chances of Getting a NewBuy Scheme Mortgage?

There are a few simple factors that can help improve your chances of getting a mortgage if you are using the NewBuy scheme:

  • Spend Wisely – Lenders will check your expenditure. If you have a fluctuating income and lots of spending, lenders will be deterred from allowing you to borrow.
  • Make Sure You Are Eligible – The rules are pretty tight for the NewBuy scheme so making sure you and your property is eligible is vitally important before applying for the scheme.
  • Improve Your Credit Score – Having a good credit score is always an effective way to get into a lender’s good books. Paying off any outstanding bills is a good start.
  • Save For A Deposit – A 5% deposit for the NewBuy 95% mortgage can sometimes amount to a lot of money, saving for a deposit may take some time. Saving for a larger deposit can dramatically increase your chances of being accepted.
  • Speak To The Experts – Here at Lending Expert we will provide the best quality service, taking the time to understand each individual’s circumstances. Speak to us today and get started on your NewBuy scheme mortgage journey.


Do I Need Good Credit To Get a NewBuy Scheme Mortgage?

Although having good credit will make you more likely to be accepted for a NewBuy scheme mortgage, Lending Expert can provide assistance to those with bad credit as well.

It may be unlikely that you could afford a larger deposit if you have bad credit, but talk to the experts at Lending Expert. Using Lending Expert as your mortgage broker will allow you to get the best deal for your financial circumstances, to help you secure a mortgage for your new build property!


How Do I Compare NewBuy Mortgage Rates?

Working with a mortgage broker such as Lending Expert will help you find the best mortgage to suit your circumstances without impacting your credit rating.

Contact us today to speak to an expert and start comparing first time buyer mortgages to find the best option for you.


What Areas of the UK Does Lending Expert Cover as a NewBuy Mortgage Broker?

We proudly offer NewBuy scheme mortgages across the entire UK, Scotland and Wales including Birmingham, Brighton, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Nottingham, Newcastle, Sheffield and more.


Why Use Lending Expert As Your NewBuy Scheme Mortgage Broker?

Working with a number of high street banks and specialist mortgage lenders, Lending Expert has access to over 1,000 mortgage deals available and is in the perfect position to help you get approved and get the best rates.

Our eligibility checker is completely free to use and can provide an indicative quote, with no obligation.

Founded in 2013, we have years of experience working in the secured loan and mortgage market and have helped thousands of customers to date. Our values have always been to find the right product for the right individual at the competitive rate – and we are pleased to offer our services for you today!