Housing Minister Grant Shapps has welcomed today's announcement by Halifax that it will be offering mortgages under the NewBuy Guarantee scheme.

Halifax is the fourth lender to offer mortgages under the scheme, and will initially be working closely with nine different housebuilders to help prospective buyers of their newly-built properties.

Launched just last month, the NewBuy Guarantee scheme enables those looking to get on or move up the property ladder the opportunity to do so with just a fraction of the deposit currently required.


From today, Halifax will be offering deals for borrowers with deposits of between five and 10 per cent.

The products available are:

•a two-year fixed mortgage at 5.99 per cent, with a £999 product fee; and

•a two-year fixed mortgage at 6.39 per cent, with no product fee

Mr Shapps said: "I'm delighted that Halifax, one of the biggest mortgage lenders on new-build properties, will now offer the NewBuy Guarantee to its customers.

"The NewBuy Guarantee is offering help for thousands of people who in many cases had previously given up on the dream of home ownership. Thanks to the agreements we are striking with lenders and builders across the industry, those aspiring to get on the property ladder are now able to do so with a fraction of the deposit they would otherwise require.

"And with more lenders and builders looking to join the scheme, customers will have a wide range of options to choose from when buying their newly-built home."

(CD)