New Build Schemes
As New Build experts we are very familiar with the wide range of schemes operated by many developers to help you achieve ownership of your new home.
Here are some notes on the most popular schemes currently available........
Help To Buy 1 (Shared Equity Scheme)
Help to Buy was launched by the government in April 2013 to support and drive purchases of New Build Homes. The main aim of it is to improve the access to and affordability of mortgages – specifically for those people who cannot afford a large deposit.
The Help to Buy scheme will be available on all newly built homes in England up to £600,000.
The Key Facts about Help to Buy
The Government will lend you up to 20% of the value of your new property through an equity loan, which will be interest-free for the first five years and can be repaid at any time or on the sale of your home. Customers will only need a minimum 5% deposit* to qualify. Help to Buy is available to all purchasers, not just first-time buyers. The scheme is available from 1 April 2013 on all new build homes in England up to the value of £600,000. There is no household annual income limit, but it is only available on new build properties and customers will only need to secure up to a 75% mortgage.
How it works
The Government will lend up to 20% of the value of a new build home through an equity loan. The buyer contributes a deposit of their own of between 5% and 20%, then the Help to Buy scheme tops that deposit up to make it a 25% deposit which leaves the buyer needing a mortgage for 75% of the property value.
Who is eligible?
The equity loan will be available to all purchasers of newly built homes, not just first time buyers, although it is restricted to a maximum property value of £600,000. All purchasers will also be subject to a Housing & Communities Agency (HCA) affordability check.
What does it cost?
The government equity loan is interest free for the first five years after which a fee of 1.75% will be charged from year six, rising annually by RPI inflation plus 1%. The equity loan can be repaid at any time within 25 years (or the terms of the mortgage), or on sale of the property. The initial loan is repaid, plus a proportion of any growth in the property value.
When is it available?
This scheme was launched on 1 April 2013, so is available now, and is scheduled to run for 3 years.
For advice on getting a new mortgage in conjunction with this scheme please contact us today.
There is a fee for Mortgage advice. This fee is up to 1% but a typical fee of 0.3% of the amount borrowed.
If however you arrange a mortgage on a property from one of our associated new homes developers, we will waive this fee.