Guide to NewBuy
Under NewBuy, all potential homebuyers (except buy-to-let investors and second home owners) are able to buy a new build house or flat with only a five per cent deposit, subject to appropriate mortgage underwriting criteria.
Housebuilders and the Government contribute to an indemnity fund, which is used to pay out the lender if a buyer defaults or where there is a shortfall if the property is repossessed.
Lenders including Nationwide, Santander, Lloyds Banking Group, Barclays and NatWest all offer NewBuy mortgages in England. The scheme is expected to help up to 100,000 first-time buyers.