High street lenders Barclays, Nationwide and NatWest have signed up to the scheme, along with seven developers. They are Barratt, Bellway, Bovis, Linden Homes, Persimmon, Redrow and Taylor Wimpey.
A Government statement said that it anticipated that "[o]ther leading names, including smaller housebuilders" would also join, and that Crest Nicholson "will be joining the scheme imminently".
The scheme is part of the Department for Communities and Local Government’s Housing Strategy and is designed to help potential purchasers of new property who have secured a 5% deposit to purchase a ‘new build’ property.
It will enable borrowers to secure up to a 95% loan to value mortgage from participating housebuilders and is a joint initiative with the Home Builders Federation (HBF) and the Council of Mortgage Lenders.
The Government said that the NewBuy scheme will support an estimated 50,000 jobs in construction and related industries and help to "jumpstart the stalled housing market".
