Prime Minister launches new mortgage scheme in Loampit Vale

David Cameron visited the Loampit Vale "Renaissance" housing project today to launch a new mortage indemnity scheme called NewBuy, which is designed to support first-time buyers.

The BBC reports:

The government hopes the NewBuy scheme - supported by Barclays, NatWest and Nationwide - will help people to borrow up to 95% of the value of new homes. Critics argue the scheme is just a ruse to help the construction industry. 

Under NewBuy, the builder pays 3.5% of the sale price into a special account held by the lending bank for seven years. Taxpayers will provide additional guarantees of 5.5% but that money will be called upon only in the event of a major property crash. 

The scheme is being unveiled on the same day Prime Minister David Cameron confirmed the extension of the right-to-buy discount to up to £75,000 for social housing tenants.

During the launch, Cameron got to hang out and live the Lewisham dream at the Renaissance show-home (pictured).

[Full disclosure: Barratt is a client of BC's employer these days].