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March 12, 2012

Barclays launches NewBuy mortgages

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by Gill Montia

Barclays launches NewBuy mortgages

Barclays has launched two first-time buyer mortgages to support the Government’s NewBuy initiative, which aims to provide mortgages of up to 95% loan-to-value for new-build properties in England.

First-time buyers or home movers purchasing a new build house or flat (with participating builders up to the value of £500,000) have a choice of a Barclays two-year fixed-rate mortgage at 4.99%, or a four-year fix at 5.89%.

Both come with a £499 application fee and revert to a lifetime tracker at base + 3.99%.

Andy Gray, head of mortgages at Barclays, says: “We are pleased to be one of the first lenders to be helping even more buyers with small deposits to buy new homes.”

He adds: “We believe this will boost housing market confidence and support the flow of new housing providing positive consequences for jobs and the economy as a whole.”

Under NewBuy, house builders and the Government have committed to cover a limited amount of any future losses.

The house builder will ring fence 3.5% from the sale and the Government 5.5%, which will be used to compensate lenders if they have to repossess and sell for less than the mortgage value.

The NewBuy mortgages launched through Barclays are available on new Bovis, Barratt, Bellway, Redrow, Persimmon and Taylor Wimpey homes.

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