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Three lenders launch MIG scheme mortgages

NatWest, Nationwide and Barclays have today launched products for the Government’s NewBuy Guarantee scheme.

Under the scheme, announced in the government’s housing strategy last November, lenders will offer 95 per cent LTV mortgages for new-build properties against a mortgage indemnity guarantee funded jointly by house builders and the government.

NatWest is offering a two-year fix at 4.29 per cent at 95 per cent LTV with a £499 fee, and a five-year fix at 4.99 per cent at 95 per cent LTV with a £499 fee.

Barclays is offering a two-year fix at 4.99 per cent and a four-year fix at 5.89 per cent, both of which comes with a £499 application fee. The bank says the products will primarily be sold via intermediaries but will also be available direct.

Nationwide is launching a three-year fix at 5.69 per cent with a £900 product fee and a £99 booking fee, while first-time buyers will receive a £500 product fee discount.

The building society is also offering a five-year fix at 5.99 per cent with the same fees. It says the rates match those currently available for customers purchasing second hand property at 90 per cent LTV.

Nationwide says its deals will initially only be available via intermediaries, and it plans to make them available direct at a later date.

The Council of Mortgage Lenders says while just three lenders have launched products today, it looks forward to other lenders, including Halifax and Santander, joining the scheme over the coming months.

Santander has today confirmed that it will be participating in the scheme and that it will launch its products by the middle of the year. The lender says it is in the final stages of agreeing partnerships with selected developers and will offer its NewBuy mortgages via intermediaries with established ties to these builders.

CML director general Paul Smee (pictured) says: “NewBuy mortgages will help creditworthy borrowers who simply have not yet managed to build up a large enough deposit to gain access to finance to buy a newly built home.”

He adds: “Borrowers need to understand the implications of high LTV borrowing, so we will be supporting the initiative with clear consumer information to help people decide whether NewBuy borrowing is an attractive option for them.”

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  1. Nationwide, intermediaries first, how refreshing, No dual pricing?

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