By Director of Mortgages and Finance, Lewis Chambers
Following on from our success in 2018, we’ve started 2019 with a flurry of exciting new projects, with new-build clients especially. We’re supporting the Bradley Hall residential team following several exciting appointments to market a range of properties built by both local and national developers and local authorities. From affordable homes to luxury property, Bradley Hall brought approximately £100m worth of new homes to market last year.
Alongside the growing numbers of new-build properties coming to market in the region, we’ve experienced an increase in our clients requiring specialist new-build mortgage advice.
New-build projects across the region have been popping up in many different shapes and sizes, providing the ideal homes for everyone, from young professionals to families and those looking for a luxury lifestyle. The price range for these properties is vast and each client is provided a bespoke service, however, regardless of the cost of the property, the buyers circumstances or position, it is always important to seek specialist new-build mortgage advice.
When purchasing a new-build, several elements of the process are different to the traditional procedure. Fees, including upfront reservation fees and costs, deposits, timescales, builder incentives, and how long your mortgage is valid for before completion can all impact the process. We aim to ensure the process is as simple for you as possible, taking away the stress and managing the process on your behalf.
Although clients vary, new-build developments are particularly popular with first-time buyers. Commonly, being a first-time buyer is a daunting experience and there are also several incentives available, each of which come with their own terms and conditions.
The Government’s big campaign to help boost the housing market came with the introduction of the The Government Help To Buy: Equity Loan scheme allows first time buyers with a lower deposit to step onto the property ladder, by providing a loan of up to 20% to add to their own 5% deposit. By creating this 25% combined deposit, the buyer can now receive a 75% loan to value mortgage from a lender. Lenders are more likely to approve your mortgage application with a larger deposit, opening more options to find the best deal for you – as well as better interest rates. The scheme can only be used against new build properties.
Other options to help get first time buyers onto the ladder include shared ownership, which means that people can own between 25 and 75 per cent of their property, paying a subsidised rent on the remainder. Terms and conditions apply, and homeowners must fall within the lower salary category.
The Government also offers a Help to Buy ISA, which allows each first-time buyer (not household) the opportunity to receive a bonus of up to £6,000. Savers can deposit up to £1,200 into a savings account and continue to save up to £200 per month. The minimum total savings are £1,600 – for which you will receive £400 from the government, and a maximum of £12,000 – which will earn you £3,000 grant for the government.
In the next few months we’re looking forward to working alongside Bradley Hall's Land, Development and New Homes department in helping hundreds of people move into their new home; with open days and launch events across several projects including the Barley Croft development in Bedlington, Orchard Dene in Jesmond and The Old Registry Office in Morpeth.