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How does Newbuy scheme work
leereni
Posts: 377 Forumite
Please can someone explain exactly how the Newbuy scheme works in terms of paying back the percentage the home builder and government lend?
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Comments
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You may be confusing different schemes.
Newbuy is the 95% scheme where the developer and Government place funds in a repossession pot. There is no extra lending.
Do you mean Homebuy/Shared Equity where they lend you some of your deposit on a second charge basis? This is normally interest-free for a few years, then interest becomes chargeable. You pay off the second charge when ready, or from the proceeds on selling. You repay a percentage of the value of the property, not a finite £ amount.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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