"The aim of the scheme is to help customers with relatively small deposits buy brand new houses," commented Charles Haresnape, Managing Director of Residential Mortgages at Aldermore.
"It has a dual role of helping people get onto the housing ladder and also, at the same time, helping building developers build and sell more homes…If you look at the number of new households that are forming each year; it's over 200,000. The new build sector accounts for less than 100,000 new homes per annum. There's a great need to encourage new building."
The mortgage products from Aldermore include the following features for home buyers: A choice of two or three year fixed rate at 5.48%, full status loans up to £400,000 and up to 95% LTV and only a 5% deposit required. Initially, Aldermore will be making its NewBuyproducts available through Fairview New Homes Limited.
"The reason why Aldermore have decided to join the scheme is because at the moment there are only five high street banks involved and we feel a lot of customers don't get the deals they're looking for…That's part of Aldermore's rationale as a challenger bank. We bring a number of USPs (unique selling points) to customers.
"Lots of high street banks decline you on your scorecard. The computer says no quite frequently. [At Aldermore], we look at customer's circumstances manually; we review their circumstances and decide if we think the customer can afford a mortgage. That's going to help more people get mortgages who cannot currently do so. "
You can listen to Charles' comments in full in the clip below. Alternatively, you can let us know your thoughts on Twitter @Aldermorebank.