There are ways to buy!
The current economic climate has meant that getting a mortgage is more difficult than it used to be, but there are still ways to buy your new home.
Many house builders offer some sort of shared equity scheme. These are schemes whereby, instead of paying 100% of the property price, buyers can pay up to 25% less while still owning 100% of their home. The builder ‘keeps’ the other share of the house, meaning the person buying only needs to get a mortgage of say 75% of the value of the home – meaning a smaller deposit and mortgage.
Of course, the low interest equity loan will need to be repaid, often when the house is sold or after a certain number of years, but it allows people to get a foot on the ladder. Look out for the best offers out there on the home builders’ websites.
Following hot on the heels of similar government-backed schemes, FirstBuy is specifically aimed at first time buyers buying a brand new house. The Government and the house builder will team up to offer applicants an equity loan of up to 20% of the purchase price of the new home so that the buyer only has to find a mortgage for the remaining 80%. The loan is free for the first five years and repaid when the house is sold.
Visit the Homes and Communities Agency web site to find out more.
A number of builders operate part exchange schemes, whereby the house builder will buy your existing home from you for the market value, allowing you to invest in a new home. The service aims to provide a quick and simple stress-free move by taking away the hassle involved in selling your own home. Part exchanging means there is no chain involved and the vendor has a guaranteed sale. It also cuts out estate agents' fees. Contact developers operating in the areas where you want to buy to find out if they operate a part-ex scheme.