Affordable housing schemes
Ways to buy: buying schemes for new build homes
Thinking about buying a new home this year? There are a number of different affordable buying schemes and incentives available that could help you make your move this year.
From low deposit mortgage schemes, like Deposit Unlock, to help covering the cost and hassle of marketing your existing home, there are plenty of options to consider.
Let’s explore new build buying schemes and incentives
Looking to get onto or move up the property ladder? There are a range of buying schemes and incentives available to help first time buyers and seasoned homeowners to move house.
First Homes
The First Homes scheme is available through certain developers who offer discounted house prices to first time buyers looking to buy a new build home. The properties are offered with a 30% to 50% discount.
There are certain criteria you must meet to be eligible, including combined household income and how much the house costs after the deposit.
Help selling your home
Many new build developers offer schemes to support a smooth and easy selling and buying process, like Assisted Move or Help to Sell. As part of this the developer will either marketing your existing home for you or cover the costs of marketing your home. You can find more details on developer websites.
Shared Ownership
The Shared Ownership scheme allows those who may otherwise struggle to save a deposit or secure a mortgage to buy shares of a property. The share you can buy is usually between 25% and 75%, though you can buy a 10% share on some homes. The rest of the shares are usually owned by a housing association, private developer or a local authority. This means that in addition to your mortgage payments, you will pay reduced rent on the shares you don’t own. Overtime you can increase your share in the property.
Deposit Unlock
Deposit Unlock was launched by the home building industry to make it easier to secure a competitive rate on a 95% mortgage, so you can buy a new build home with a 5% deposit. Deposit Unlock reduces the lending risk of your mortgage as the developer takes out insurance for a percentage of the property price. By reducing the risk, lenders can offer you a lower interest rate.
Deposit Unlock is available from participating developers and lenders. It can be used by first time buyers and existing homeowners.
Own New
Similar to Deposit Unlock, the Own New scheme aims to make homeownership allows first time buyers and existing homeowners to buy a new build home with as little as a 5% deposit. The scheme works in the background to give you access to reduced mortgage rates on new build homes and, like Deposit Unlock, you’ll own 100% of your home.
Help to Buy (Wales)
Although the Help to Buy scheme has ended in England, Welsh government still offers the scheme through registered Help to Buy – Wales builders. It works by providing a shared equity loan of up to 20% of the purchase price of your new home. This means you can use the scheme to purchase a new build home up to £300,000 with a 5% deposit. Check out the eligibility criteria for more details.
Key worker discounts
Many homebuilders are now offering key workers discounts on new build homes. These discounts are usually available on selected developments and homes, and are available to people working for the NHS, Police service and Fire service, in addition to a range of public service sectors – including education. You’ll find details on developers’ websites.
Green mortgages
A green mortgage is an incentive designed to encourage first time buyers and seasoned homeowners to buy an energy efficient home. Lenders offer preferential terms to a house buyer if they can prove it meets certain environmental standards. Most new builds qualify for green mortgage products as 85% are A or B EPC-rated properties.
Generation Home
Generation Home is a residential mortgage lender offering solutions to buying a home with support from family and friends by either boosting your deposit or income to increase your affordability. It can solve common income and deposit challenges that many first time buyers face by increasing their borrowing power.
Lifetime Isa
You can use a Lifetime Isa towards the deposit for your first home. To open an account you must be between 18 and 40 years old, and you can use it to save up to £4,000 each year until you’re 50. The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.
Part exchange
Want to save yourself the hassle of selling your home, skip estate agent fees and enjoy chain-free buying? Many homebuilders offer part exchange schemes. The developer will offer you a price for your home based on independent valuations, then oversee the selling of your property. The eligibility criteria differs depending on developer.
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Some of this information was contributed 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.