So, you’ve found the good-value new build of your dreams, but ready cash for a deposit doesn’t grow on trees. What could this government-backed NewBuy scheme do for you? Helen Geraghty finds out.

Developers in Kent have been quick to show what’s on offer for a deposit of just 5% as part of the new government-backed NewBuy scheme.

The news that a 5% deposit is all that’s needed for just about anyone, not just first-timers, to secure a brand new property has been welcomed by buyers, with thousands ringing developers asking how to get involved.

Designed to kick-start the housing market by underwriting mortgages of up to 95% of the property’s value, NewBuy will be available to people spending up to £500,000 on a newly built home, whether they’re a first-time buyer or already own a house.

NewBuy, launched earlier this month, was developed jointly by the Home Builders Federation and Council of Mortgage Lenders. Launching the scheme, housing minister Grant Shapps said: “This government inherited a housing market in disarray, with millions of hard-working people blocked from taking their first step on the housing ladder – their desire to buy a home no longer a dream, but a distant fantasy.

“We want to help everyone achieve their aspirations, and feel the pride of home ownership. So I’m delighted that from today the NewBuy Guarantee will give thousands of prospective buyers the chance to buy a home with a fraction of the deposit normally required.”

It is also hoped that NewBuy will give a huge boost to the house-building industry. The scheme is open for both first-time buyers and those looking to move who own a property already. The increased demand for new homes will also give a boost to house-builders and the economy, and will support 50,000 construction jobs.

The deals will mean that rather than a typical buyer saving a £40,000 deposit, they will now only need £10,000.

The scheme has already attracted strong support from many of the country’s biggest house builders and mortgage lenders.

To find out more, buyers can register an interest with their chosen developer, or there is lots of information on the government web page www.communities.gov.uk/housing/homeownership/newbuy/

Who can access NewBuy?
+ All home buyers can access NewBuy, subject to lenders’ standard affordability and underwriting checks, and minimum eligibility criteria
+ The property to be mortgaged must be a new-build property in England, constructed by a builder who is in the scheme
+ The price of the property must be less than £500,000
+ It must be a standard purchase (not shared equity or shared ownership) and the property must be the applicants’ main home (not a second home or a buy-to-let investment)
+ Applicants must be UK citizens, or have indefinite leave to remain in the UK