Are you considering buying a new build home? Then you’ll want to do your research: from finding out about the schemes that could help you buy a new build property to weighing up the pros and cons. Here’s what to consider….
A new build property is one that is brand new and hasn’t been lived in. And if you buy your new build home ‘off-plan’ – which means buying before it has been built – you may be able to choose certain elements of the design too.
If you want to buy a new build home, the good news is there are three main schemes available to help you secure your dream property. These are:
This government scheme is designed to help people buy a new build home. When you buy through the scheme, the Government will lend you up to 20% of the property’s value – or up to 40% if the property is in London. This is called the equity loan. You need a minimum deposit of 5% and you’ll take out a mortgage for the remaining amount. The scheme is available to first time buyers and regional price caps apply on the value of the property you can purchase, up to a maximum of £600,000 in London.
Please note: there are different Help to Buy equity loan schemes for England, Greater London, Wales and Scotland. They all vary; this information relates to England and Greater London only.
With shared ownership you buy a share of a property and pay rent on the rest. The share you can buy is usually between 25% and 75%; however, you can buy a 10% share of some homes. It could be a good option if you have a limited budget: because you’re only buying a percentage of a property, you’ll need a smaller mortgage and deposit. You can buy a bigger share of your home after moving in. This is called staircasing.
Deposit Unlock is a brand-new scheme that has been devised in collaboration with lenders and the housebuilding industry. It’s designed to enable first-time buyers and existing homeowners to purchase a new build home from participating home builders with just a 5% deposit.
Lots of factors make buying a new build home very attractive.
However, when you’re buying a new build home there are some things to look out for.
If you’re considering buying a new build home please do not hesitate to get in touch with us to discuss all your possible options, we’re always here to help.