Using Government schemes to help buy a new build home
Many government schemes are available for first time buyer & Homemovers, a lot of these are aimed at specific groups of people, like local residents or certain people who earn under a certain wage.
After speaking to one of our expert mortgage brokers we will be able to tell you which new build scheme will be available for you and what purchase price you can look up to.
Please Note: Help to Buy Equity Loan will close to new applications on 31 October 2022.
The shared ownership scheme was introduced by the government to help families on lower incomes to become home owners. Shared ownership homes are provided through the housing association.
They work by offering buyers a share of the property ownership and you will need to pay rent on the remaining share. Typically you can buy between 25% and 75% of the property value.You’ll need a mortgage to help buy the share of the property, but much like the government’s help to buy scheme you can put a smaller than average deposit down, a lot of the time you will only require a 5% deposit instead of forking out a much larger deposit like 10% – 20%. This is based only the part of the property that you are purchasing and not the full price.Over time, buyers have the opportunity to increase the share of the property they own, either by borrowing more from the lender and increasing the size of their mortgage or by making a large cash payment, this process is known as “Staircasing”.
Some property developers have been known to offer incentives if you buy their property. These can include: wavering stamp duty, reducing legal fees, for example.
Developers tend to do this rather than reduce the price of the property, and these incentives can work well with first time buyers who are looking to cut costs wherever possible.
Some lenders have issues with certain incentives and how they are used, with our vast experience within the new build sector we will make sure we proceed with the right lender for you.
