Help to Buy New Build Mortgages
Our Mortgage Service - helping you make the right decision
"The essence of the Fair Mortgages service is professional independent mortgage and protection advice brought to you by a team of specialist advisers and experienced administration support.
As your mortgage is such an important transaction, good advice is imperative.
Compare the latest Help to Buy New Build Mortgage Deals
Until March 2015, people who wanted to buy a new build home could take advantage of the Government’s NewBuy scheme, which offered prospective homeowners the chance to buy a brand new property values at up to £500,000, with a deposit as small as 5%.
Although this scheme has now ended, there are plenty of other Help To Buy Government-backed schemes available that could help you to buy the new build house you want.
Help to Buy – Equity Loans for New Build Mortgages
A Help to Buy Equity Loan involves the Government lending you up to 20% of the cost of your new build home, valued up to £600,000. This means that you could get a 75% loan to value (LTV) mortgage providing that you can make up the remaining 5% deposit. One of the key benefits of the Help to Buy Equity Loan scheme is that you will not be charged any loan fees for the first 5 years of owning your home. In the sixth year after purchase you will be charged a fee up to 1.75% of the loan’s total value, and in subsequent years this will increase in accordance with the Retail Price Index plus 1%.
Here is an example of how the Help to Buy Equity Loan works if you were to consider purchasing a £200,000 house through the scheme:
- You provide a 5% deposit – in this case, £10,000
- The Government provides a loan of 20% of the value of the home – in this case, £40,000
- You apply for a 75% LTV mortgage from a mortgage provider to cover the remaining £150,000
Help to Buy – Mortgage Guarantee scheme
This phase of the Help to Buy scheme means that the Government offers mortgage lenders a guarantee on a portion of the mortgage.
The lower risk this presents to banks means that they may be willing to offer mortgage deals of up to 95% loan to value to prospective purchasers, meaning that you could buy a home with a deposit starting from as little as 5% of the property’s value.
Am I eligible for Help to Buy?
It is important to remember that all strands of the Help to Buy scheme are not payment guarantee scheme and you will be fully responsible for making the necessary mortgage repayments. Before you consider a help to buy mortgage for your new build home, it is essential to ensure that you can not only afford the deposit and moving costs, but can also budget for your monthly mortgage repayments.
- The Equity Loan Scheme is available to both first time buyers and those who have owned a home in the past but are now renting. It is not open to people who currently own a home.
- The scheme is only on offer in England, but similar schemes are on offer in Scotland, Wales and Northern Ireland.
- You will need a minimum 5% deposit of the property’s value
- The property value cannot exceed £600,000
- You will need to meet all the usual mortgage criteria, such as having a good credit record and meeting affordability criteria
- The scheme is not available to overseas purchasers who have never owned a home in the UK
- You cannot take up Help to Buy in conjunction with any other other government home ownership schemes such as Right to Buy
Getting a Help to Buy Mortgage for a new Build Home
Our dedicated whole of market mortgage team can help you to locate the right mortgage deal to suit your needs. To find the best help to buy new build mortgage deals for you – call us today on 0117 403 4474 or to speak to one of our mortgage advisers click here »