New Homes Mortgage Schemes
We have a deep understanding of the different lending criteria and the legislation surrounding new build properties. We have an intimate knowledge of Government and privately supported schemes such as First Homes Scheme and Shared Ownership. We have long and well-established relationships with many National and Regional developers and Housing Associations.
We are the trusted broker to qualify and advise purchasers buying new homes.
In the UK there are different Government and Local Authority backed schemes available for new build homes. These can be found at ownyourhome.gov.uk.
Shared Ownership Scheme
The shared ownership scheme allows you to part rent and part buy your new build home. You can purchase between 10%-75% of the home’s value depending on the scheme. This means that you can either put down a smaller deposit or have a lower income to get the new build mortgage you need.
First Homes Scheme
The Government’s First Homes Scheme is available through certain developers. They offer discounted house prices to first time buyers looking to buy a new build home, or an existing house originally purchased as part of the scheme in their local area. There are criteria that clients must meet to be eligible, including combined household income and the purchase price after the deposit.
You may find that there are local schemes available that offer great deals for new build mortgages. Sometimes they may offer schemes similar to the First Homes scheme, but the discount is not applicable to the sale, only the initial purchase.
Reduced Stamp Duty
The increased nil rate band means no stamp duty is due on purchase prices up to £250,000. The Government introduced further support for first time buyers, reducing the amount of stamp duty due this applies to house purchases in England and Northern Ireland. For anyone meeting the definition of a first-time buyer, this threshold increases to £425,000. First time buyers also benefit from a discounted rate on property purchases up to £625,000. These limits are due to remain in place until March 2025. You can find out how much Stamp Duty Land Tax you will pay by using our Stamp Duty Calculator.
Mortgage Guarantee Scheme
Under the scheme the government offers lenders the financial guarantees they need to provide mortgages to apply for a 95% loan to value (LTV) mortgage, with participating lenders offering a government backed mortgage guarantee scheme.
This allows first time buyers the chance to buy a new build home with a 5% deposit and a 95% mortgage, with a guarantee from lenders. This initiative was developed by the Home Builders Federation (HBF) and has been extremely successful with more than 30 developers offering the scheme.
The Own New scheme will allow both first time buyers and homeowners to buy a new build house (or flat) with as little as a 5% deposit, you’ll need a 95% mortgage to cover the rest.
Help to Buy (Wales)
The Welsh government has committed to an extension of Help to Buy. The price cap for homes is £300,000 (from 1 April 2023). Homes brought under the scheme must meet a minimum EPC rating of B.
Forces Help to Buy
The scheme enables Serving Personnel to borrow up to 50% of their gross annual salary (up to a maximum of £25,000) to encourage and support home ownership including the option to Self-Build. This advance is interest free, repayable over a maximum of ten years and is open to most regular personnel with more than 12 months’ service.
Key worker discounts
Many homebuilders are offering key workers discounts on new build homes. These discounts are usually available on selected developments and homes. They 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.
This is an incentive designed to encourage first time buyers and 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 qualifying criteria requires EPC rating of A or B.
Generation Home is a residential mortgage lender offering solutions to buying a home with support from family and friends. The people supporting the applicant can either boost your deposit or income to increase affordability. It can solve common income and deposit challenges that many first-time buyers face, by increasing their borrowing power.
Have a house to sell?
Many home builders offer part exchange schemes. The developer will offer a price for your current home based on independent valuations, then oversee the selling of the property. The eligibility criteria differs depending on the developer.
Many 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 market your existing home for you or cover the costs of marketing your home. You can find more details on developer websites.
If you are looking to buy a brand-new home and would like to understand how we can help, speak to a specialist new home advisor. We don't charge any fees for our advice at any time, 0800 098 7177.
We have access to many specialist products, not available on the High Street or to some mortgage brokers, which are specifically tailored to new home properties. Let us find the right solution for you.
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