Nationwide mortgage NewBuy expanded to smaller UK builders.

The Nationwide mortgage NewBuy scheme has been extended to allow smaller UK builders to offer NewBuy homes, even if they are not large enough to build the minimum number of properties ordinarily needed to qualify for the Government led scheme.

On March 12 this year the Nationwide mortgage NewBuy proposition had in place agreements with 6 UK building firms. These were Barratt, Taylor Wimpy, Persimmon, Bellway, Bovis and Redrow, a week later a further 2 builders signed up and the list now includes Crest Nicholson and Linden Homes.

In order qualify for a relationship with lender, NewBuy builders need to have the capacity to build roughly 100 properties over a 3 year period.

Andrew Baddeley-Chappell who is the Nationwide mortgage head of strategy and policy has said that a builder needs to be reasonably large to be able to enter into the required individual relationship.

He adds that 100 properties is a rough figure and if a builder has an arrangement with 5 lenders then they need to provide 500 homes. He advises that for small builders unable to hit this 100 property minimum the Nationwide has added a new multi-user agreement.

The first builder who has signed on to the new Nationwide mortgage NewBuy multi-user agreement is Fairview New Homes.

For details of all NewBuy mortgage deals contact Deal Direct.