Aldermore has become the first challenger bank to join the government’s NewBuy scheme.

NewBuy is designed to help homebuyers with a limited deposit acquire a new home.

Initially, Aldermore will be making its NewBuy products available via Fairview New Homes Limited, which has developments located throughout the South and East of England.

Aldermore’s NewBuy mortgage products include the following features:

• Choice of two or three year fixed rate at 5.48%
• Full status loans up to £400,000 and up to 95% LTV
• Only a 5% deposit required. Gifted deposits are acceptable from close relatives and full gifted deposits are acceptable for first time buyers, subject to evidence of 12 months continuous rental payments
• Minimum valuation of £75,000 and maximum £500,000
• Capital and interest loans for house purchase with repayment periods up to 25 years

“Aldermore’s delighted to be the first challenger bank to join the NewBuy scheme, which is an important initiative to help homebuyers struggling to raise a sufficiently large deposit,” said Charles Haresnape (pictured), managing director of Aldermore Residential Mortgages.

“NewBuy is one of a number of initiatives designed to help breathe life into a moribund housing market and we look forward to rolling out the scheme with additional builder partners over the coming months.”

Jim Holliday, group sales and marketing director at Fairview New Homes Limited, added: “NewBuy will not only help first-time buyers having difficulties raising the necessary deposit, but any aspiring homebuyer who wants to own a new home.

“We are looking forward to working closely with Aldermore over the coming months to make this scheme available to prospective home buyers.”