Opinion and guidance

New build mortgage options and incentives for your next home

You have been through the mortgage process before but that doesn’t guarantee that the homebuying journey will be easier next time. What options are available for ‘second-steppers’ looking to buy a new home? And are new builds the solution? Heather Martens, Content Marketing Executive at Mortgage Advice Bureau explains more.

Second time buyers

When considering a second home, many homeowners want something that feels like an upgrade on their existing property, whether it’s more space, a bigger garden, or a driveway. Unfortunately, because you have previously owned a property, no matter how long it’s been since transactions, you can’t qualify for any first time buyer incentives, including stamp duty relief. This also includes shared ownership schemes.

That being said, with homes often appreciating in value as time passes, you could find that you have a sizable deposit for your next move. Uprooting yourself can feel overwhelming, however, and it can still be helpful to get some extra support. New builds are well geared to deliver this.

Why new builds are a good option

There are several advantages to buying a new build home in the UK when you’re moving home. New build homes tend to offer a clean and modern living environment, with energy efficiency in mind, which can result in lower energy costs.

They also often come with a developer supplied warranty, ensuring you have peace of mind with the quality and longevity of your new home. New build homes often make the most of new technology and trends in home design, which can mean a more comfortable and functional living space. They often come with a range of design options as well, allowing you to choose the exact features and finishes you want to best suit your style and needs.

Finally, buying a new build home can minimise the hassle and uncertainty of the traditional home buying process, including negotiating with sellers, making repairs and renovations, and dealing with the legal and financial aspects of buying an older property.

For many second time buyers this is ideal, as the breadth of choice and functionality means you have plenty of options when it comes to designing your ideal living space.

Incentive options

Part exchange programmes, assisted moves, and discounts for armed forces and key workers are all options available to homeowners looking to make a move, whether that’s to a larger property or something smaller. These each come with a range of benefits for homeowners, ultimately making the process as stress-free as possible. They should also allow access to a wider range of properties, as well as the ability to access the equity in your current property, which you can use to help fund a move.

Part exchange

Part exchange is a popular option for second-steppers and homemovers who want to move up the property ladder without the hassle of selling their current home. With part exchange, you trade in your existing property for a new one, with the developer taking care of the sale. This eliminates the stress and uncertainty of waiting for your property to sell, and allows you to move into your new home quickly and easily.

Assisted moves and cash contributions

The aim of an assisted move is to help homeowners sell their current property and buy a new one without the stress and hassle of dealing with multiple estate agents and legal processes. It also aims to provide financial assistance to help you cover your costs. This can take the form of a cash deposit, a contribution to legal fees, or a reduction in the cost of your new home.

House builders and developers often offer this service, and it can be a useful option for people who are looking to move home but are finding it difficult to sell their current property.

It is important to note that assisted moves can vary depending on the house builder or developer, and you should check the terms and conditions of the service carefully before applying. You may also want to seek advice from a financial adviser or conveyancer to ensure that you understand the full costs and implications of an assisted move.

Armed forces and key worker discounts

Most developers in the UK offer discounts for both armed forces personnel and key workers and these can make a huge difference to your overall costs. Applying for this discount through a developer could see you earning a £500 discount for every £25,000 that you spend¹.

Speak with your developer to learn more about any specific incentives they may offer.

Expert guidance on buying a new home

Selling and buying a home can be a complex and stressful process, but with the right guidance, it can also be an exciting and fulfilling experience.

While the market may seem geared to first time buyers, there are plenty of options available to second-steppers, and with the right support and resources, you can find a mortgage that suits you. Get in touch with a mortgage adviser to discuss your options.

¹Tilia, 2022

This information was contributed to by our friends at Mortgage Advice Bureau (MAB). MAB is one of the UK’s leading consumer  intermediary brands, winning more than 200 awards for the quality of its advice and service. MAB has more than 2,000 advisers offering expert mortgage, protection and general insurance advice on a local, regional, and national level to consumers, both face to face and over the phone.