Nigel Stockton, Financial Services Director of Countrywide said:
“I have been saying since October 2011 that Newbuy is a great step in the right direction for both builders and lenders, but if we all wanted NewBuy to work properly with a successful launch then it should have waited until all the major lenders – including Lloyds Banking Group (especially the Halifax) and Santander - had time to build their automated systems.”
“What you have now is entirely predictable with the HBF criticising lenders to Government and saying that lenders are delaying – this despite the fact that the two largest lenders haven’t even launched yet – and that the scheme isn’t being supported. In our view, the Government forced a date onto the Council of Mortgage Lenders that was three months too early which has resulted in a fragmented launch with only three lenders offering products in the mortgage marketplace.
“Countrywide is in a unique position to help the NewBuy scheme, providing support to both developers through its Land & New Homes team – especially the smaller operators with limited resources - and also to lenders having spent considerable time educating its brokers on the complexities of the scheme.
“NewBuy is a step in the right direction for some buyers but in the absence of any clear guidance on part exchange, it is no substitute for face to face advice and we would urge consumers to seek out professional face to face advice from a broker that can draw on a number of products from high street lenders to suit a client's personal circumstances.”
Countrywide also voiced concerns that the scheme has been misunderstood – it helps all buyers, First Time Buyers AND Homemovers, with a product that can offer up to 95% LTV on a new build property up to the value of £500,000, which make up a significant proportion of new homes in the UK.
NewBuy is also said to support part exchange sales, although brokers are still awaiting clear-cut guidance on the criteria from NewBuy lenders, which has been the root cause of criticism from many brokers and developers alike
Countrywide also added that it wasn’t helpful to scaremonger about negative equity.
Stockton said:
“In our opinion comments about negative equity are misplaced as the seven builders involved in the scheme are offering excellent dwellings at good value” added James Poynor, Head of Land and New Homes at Countrywide.
“We call on both the Government and the HBF to wait until the end of May to assess the situation. Ill judged early comments before the scheme is given a chance helps no one."
