New build buying schemes and incentives
Whether you are interested in low deposit mortgage options like Deposit Unlock, or need help with marketing and selling your current home, there are a number of buying schemes and incentives available to make buying a home simpler and more affordable.
New build buying schemes and incentives
Whether you are interested in low deposit mortgage options like Deposit Unlock, or need help with marketing and selling your current home, there are a number of buying schemes and incentives available to make buying a home simpler and more affordable.
Schemes to help you buy a home
Deposit Unlock
Deposit Unlock was launched by the home building industry to make it more affordable to 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 on a 95% mortgage.
Unlike Shared Ownership, with Deposit Unlock you will own 100% of your property.
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 has been introduced to make homeownership more affordable and accessible. Own New offers two products: Rate Reducer and Deposit Drop.
Rate Reducer offsets an agreed home builder contribution of 3% or 5% of the purchase price against the mortgage interest to reduce monthly repayments during the initial mortgage term.
Deposit Drop lets you buy a new build home with a 5% deposit.
Both schemes are available from participating home builders and lenders.
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.
First Homes
The First Homes scheme makes it possible for first time buyers who meet eligibility criteria to buy a home with a 30% to 50% discount.
Unlike Shared Ownership, there is no rent to pay and you will own 100% of the property.
You must be 18 or older, not earn more than £80,000 before tax (£90,000 in London).
Local authorities may set eligibility criteria beyond the standard requirements. For example, some councils may prioritise local people or key workers.
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.
Lifetime ISA
You can use a Lifetime Isa to save up to £4,000 a year to buy your first home, providing the property costs £450,000 or less.
The government will boost your savings with a 25% bonus, up to a maximum of £1,000 per year.
You must be between 18 and 40 years old to open an account and buy the property at least 12 months after your first payment.
Green mortgages
Green mortgages offer lower mortgage rates and incentives for buyers of energy-efficient homes.
The idea is that lenders reward home buyers of energy-efficient homes with better interest rates, cashback on their mortgage, or even increased loan amounts.
This is due to the lower running costs of energy-efficient properties, which can result in significant month energy bill savings.
Speak with a financial advisor, mortgage broker or lender to find out more.
Schemes to help you move home
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.
Assisted move
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.
New build developer incentives
One of the key benefits of buying a new build is that you can benefit from developer incentives offered by many home builders. These can include:
- Paying stamp duty
- Providing a deposit contribution
- Free upgrades on home finishes like flooring and appliances
Many homebuilders also offer key workers discounts on new build homes. These discounts are usually available on selected developments and homes, and are available to people working within public services, for example NHS staff, Police Officers, Fire Fighters and teachers.
The incentives available will vary by developer, development and sometimes plot. You can usually find more information on the deals available via the development’s website or you can speak with the friendly sales team.
Home buyer experiences
“The Own New initiative has been brilliant for us,” said Jack, who is studying at Newcastle University. “The deal we have got will see us pay £1,050 a month on the mortgage for our own three-bedroom house while the flat we were sharing in Newcastle city centre was costing £1,200 a month to rent.
Sarah works for the NHS as a Fundraising Manager which meant she was able to take advantage of the Key Worker incentive to buy her new home with a .
Aaron and Louise used Express Mover, so the developer worked with a local estate agent to sell their existing property – and covered the cost of the agent’s fees.