The RICS have published statistics which suggest that acquiring a buy-to-let property is now 500 per cent more expensive than it was five years ago. A 70 per cent Loan to Value mortgage on a typical new-build apartment will mean that an investor has to find well over £100,000. Where a flat may not be finished for more than a year this will mean that a lot of the funds are tied up (with no benefit for a purchaser).

There is now a scheme in place which enables a purchaser to pay a guarantee premium to a deposit scheme. That scheme will then provide a bank backed financial indemnity to the developer, provided the developer will accept this bond rather than the deposit itself.

Particularly in the current market, developers are often keen to have their sales under contract rather than have a deposit in the bank. If you are interested in purchasing a new-build property but are put off by the thought of having your deposit funds tied up, it is worth looking at this type of scheme.

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