Financing your new home
6 April 2017
1. What is Help to Buy?
- Help to Buy is a financial scheme introduced by the Government to help people to buy their own homes.
- Help to Buy Equity Loans are only available on brand-new homes and you may only need a 5% cash deposit alongside a 20% interest free loan from the government and a mortgage for the rest. The loan has to be repaid to the Government within five years or on sale of the property. This is not available for second homes or investment purchases.
- Many of our housebuilders offer Help to Buy on their new homes so please feel free to ask any questions when you visit the show home or sales office on site.
2. Is
part-exchange a good option or should I market my home myself?
- If
your heart is set on a particular new home, then part exchange can be a useful option to
get the reservation underway immediately. We’ll arrange for your current
home to be valued by local estate agencies and the developer will then make you
an offer to buy your home. You may find this is at a lower level than you’d
been hoping for and it’s up to you whether or not to accept but the advantage
of having a ready buyer with finance in place and no chain can give you the
peace of mind to start planning your move with confidence.
- Some
developers offer an 'Assisted Move' package where they’ll help with the appointment of
agents and negotiations. This is an actively supported option so we’ll be
keeping in touch with you throughout the process although if your home doesn’t
sell within a certain time frame, the new home you’d set your heart on may be
put back on the market.
- We
can also help if you’d rather take control of marketing your home in the
traditional manner. Henry Adams has 1,000s of buyers on our branch database waiting
for their next home to become available and who knows, it might be the one you
want to sell! It’s unlikely a developer will allow a reservation until
you have a complete chain behind you but rest assured we can quickly guide you
through going on the market and we’ve had many instances where homes sell
within a few days.
3. Do
you need a special mortgage for a new home?
- No,
you can go to your usual mortgage advisor or we can recommend someone if you
prefer. The application and references will all be done in the normal way. A
full survey is rare as there will be a warranty, such as the NHBC in place, but
you may want a homebuyers report if the property is ready. One thing to watch
out for if you’re buying off plan is the date when the mortgage offer runs out
or you could be back to the beginning so let your mortgage advisor know the
estimated completion date at the very outset.
4. Can
I make an offer on a new home?
- Prices
are clearly laid out by developers for their current release of homes but it’s
always worth asking whether or not there are any special incentives
available. Most new homes are sold at the asking prices but you’re
welcome to make an offer which the developer may or may not accept. You may
want to look at alternatives, such as whether carpets can be included if they
are not already part of the specification. It’s only really worth making
a firm offer once you’re in a good position, ready to place a firm reservation,
with a mortgage agreed in principle and a complete chain behind you or nothing
to sell.
- Then
talk to us about which plot you like and hopefully you’ll soon be signing the
reservation forms!
If you would like to speak with any of our New Build Property Team, then please do call us on
01243 521 833, if you'd like to register to receive bespoke property alerts, exciting industry related news and exclusive incentives, then
register with us today.
Tags:
Home Buying Advice
