NewBuy is a joint Government / Builder Indemnity Guarantee scheme for the new build market. Through NewBuy your client can purchase a New Build House or Flat with a deposit from 5% to 9.99%.
- Nationwide will lend between 90.01 – 95% LTV on New Build Houses and Flats build by selected builders (see below for details)
- The property must be the applicants' main residence.
- The property cannot be used for a holiday or second home, or a Buy to Let as must be owner occupied.
- Shared Ownership and Equity Share are unacceptable in conjunction with NewBuy.
- Part Exchange of your clients' existing property accepted.
- Properties which have a resale price restriction are acceptable under NewBuy, subject to the s106 meeting our criteria.
- Applicants must be UK citizens or those who are non-EEA nationals must have indefinite leave to remain.
- Applications are subject to our standard affordability and underwriting policy.
- NewBuy applications are only accepted on a capital and repayment basis.
- Existing borrowers wishing to port their current mortgage product to a NewBuy property can do, please see the porting section (below for more information).
- The scheme is currently only available on properties in England.
- Where a product fee applies, this can be added to the loan provided the total borrowing (i.e. loan plus fee) does not exceed 95% LTV.
- Maximum Loan Size £350,000
Non NewBuy New Build House
Non NewBuy New Build Flat
NewBuy House or Flat
A minimum deposit of 5% is required on all NewBuy cases which can only come from:
- The applicants own resources
- Gift from family/friends (the gift must not be repayable under any circumstance and have no conditions attached)
- A combination of the above is acceptable
- A bespoke range of NewBuy products available for this lending between 90.01 – 95% LTV.
- Please refer to our current interest rates for full details.
Builder cash backs/deposits and other financial incentives such a payment towards legal fees, stamp duty or mortgage subsidies will not be permitted in conjunction with a NewBuy application.
The following Non financial incentives are acceptable:
- White goods (where not included as standard specification)
- Floor coverings
- Integrated lighting (down lighters)
- Kitchen upgrade, including tiling and worktops
- Bathroom upgrade
- All electric upgrade – i.e. additional sockets, TV points, etc.
KFIs are available via our paper applications system
Processing NewBuy Applications
Please send your paper application and questionnaire to our NewBuy dedicated service centre:
Northampton Service Centre (IPA)
Kings Park Road
You can send your paper DIP and questionnaire via email to email@example.com or by fax to 01604 852 879
Existing borrowers can port their current mortgage product to a NewBuy property. Ported products are subject to our normal New Build LTVs. Therefore, the ported part of the new loan will be limited to 85% LTV for a New Build House and 75% LTV for a New Build Flat. The ‘top up’ must be taken on a NewBuy product. This may result in the customer being charged an ERC if they are only porting part of their existing balance.
Nationwide instructs its valuers to value all new properties (flats, maisonettes and houses) on an ‘as new’ basis. New properties may include a new build premium. A new build premium is the additional value in a property that diminishes once the property is occupied. For details of valuation fees, please refer to our Valuation Fees page