Nationwide Building Society 95% mortgages through Newbuy scheme

From Tuesday 13 March 2012, Nationwide has started to accept applications under the Government's NewBuy scheme. The scheme could help you buy a new build house or flat with a mortgage up to 95% Loan to Value (you only need a 5% deposit).

Initially, Nationwide will only accept NewBuy cases from customers who have applied through an intermediary (Mortgage Broker). 

The property must be your main residence and cannot be used for a holiday or second home, or a Buy to Let and must be owner occupied.
Applicants who are non-EEA nationals must have indefinite leave to remain.
Applications are subject to standard affordability and underwriting policy.
NewBuy applications are only accepted on a capital and repayment basis

A minimum deposit of 5% is required on all NewBuy cases which can only come from: The applicants own resources, a gift from family/friends (the gift must not be repayable under any circumstance and have no conditions attached) or a combination of both.

Builder cash backs/deposits and other financial incentives such a payment towards legal fees, stamp duty, mortgage subsidies or part-exchange of your clients existing property will not be permitted in conjunction with a NewBuy application. Non-financial incentives such as soft furnishings, white goods, carpets etc are allowed. 

The only acceptable builders are : Barratts, Bellway, Bovis, Persimmon, Redrow and Taylor Wimpy.