More than a hundred people signed up to take advantage of a new 95 per cent mortgage product via Barratt Development’s website within hours of the government housing strategy being published.
The country’s largest housebuilder introduced a pre registration box on its website on Monday afternoon following the Prime Minister’s announcement of a government backed mortgage indemnity guarantee scheme.
A Barratt spokesman told CN: “We got the pre-registration up and running at around 5pm on Monday and we had over 100 sign up that night.
“It just goes to show there is an awful lot of interest out there.”
The scheme, led by the Home Builders Federation and Council of Mortgage Lenders will be open to all housebuilders and applies to all new build properties.
It was at the centre of the government’s new housing strategy published on Monday, described by Prime Minister David Cameron as “radical and unashamedly ambitious”.
The first guaranteed mortgages are expected to be available from March 2012.
Lenders representing 80 per cent of the market – including Barclays, HSBC, Lloyds, Nationwide, RBS, Santander and Yorkshire and Clydesdale Banks – have agreed in principle to participate.
Over 25 of the country’s largest housebuilders have also signed up, representing more than 60 per cent of current completions.
Buyers will have access to mortgages of up to 95 per cent loan to value, with housebuilders contributing 3.5 per cent of the value into an indemnity fund and the government supporting the fund to a total of 9 per cent of the property value.
The indemnity fund pays out to the lender if a property financed under the scheme is repossessed and there is a shortfall.
Housebuilders will take the first loss in the indemnity, with government only being called upon to pay once the builder’s fund has been exhausted.