View more on these topics

Nationwide expands NewBuy to smaller builders

Nationwide has launched a scheme to allow smaller builders to offer NewBuy who on their own are unable to hit the minimum amount of properties needed to qualify for the scheme.

On March 12 when Nationwide first launched its NewBuy proposition it had agreements with six building firms – Barratt Developments, Taylor Wimpy Homes, Persimmon Homes, Bellway Homes, Bovis Homes and Redrow, with Linden Homes and Crest Nicholson signing on a week later.

To qualify to have an individual relationship with lenders on NewBuy builders are expected to be able to build around 100 properties over three years.

This is because they need to have a spread of properties so the risk can be spread in order to get the capital relief that is a feature of the scheme.

Andrew Baddeley-Chappell, head of mortgage strategy and policy at Nationwide, says: “It needs to be a fairly big builder to enter into these individual relationships.

“100 properties is a ballpark figure – that 100 is 100 per lender if you like, so if there are five lenders in the scheme, they would need to provide 500 properties.”

But for smaller builders who are unable to hit this minimum requirement of properties Nationwide has now added a multi-user agreement.

Baddeley-Chappell adds: “This is for builders that aren’t building on enough scale so they in effect pull together – this means you then begin to allow a larger range of builders into the scheme.”

Fairview New Homes is the first builder to sign on to the multi-user agreement with Nationwide for NewBuy.

Recommended

MPs accuse Treasury of failing on mutuals

MPs are pressing the Government to set out how it intends to meet the coalition agreement’s commitment to “promote mutuals and foster diversity” in financial services. In July, the all-party Parliamentary group for building societies and financial mutuals published a report calling on the Government to say how it will deliver on the pledge. Almost […]

Lowes queries ethics of enhanced share buyback schemes

Lowes Financial Management managing director Ian Lowes says venture capital trusts are using enhanced share buyback schemes to encourage investors to stay in badly performing investments. Enhanced share buybacks allow investors to sell their VCT holding back to the provider at the end of their five-year investment term, often for the net asset value, less […]

OPM adds US high yield to fixed-interest range

OPM Fund Management has introduced a US high-yield und and a gilt futures short into the OPM fixed interest fund. The multi-manager wanted exposure to US high-yield corporate bonds in the portfolio because it sees value in this asset class. It has added the Allianz US high-yield fund, run by Doug Forsyth, to its fund […]

Gold funds hit by big losses in March

Resources funds were the worst-performing portfolios of March, with products targeting gold being hit especially hard. Analysis of FE Analytics figures shows the top-ten list of worst-performing funds is dominated by products targeting miners, with gold funds accounting for more than half. Angelos Damaskos’ MFM Junior gold fund was the worst-performing portfolio in March, as […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment