Our independent mortgage adviser, Richard Hall, believes that this rise has come about due to the increase in options for first time buyers. He says “We now have more options than we have had for over 6 years!”

The New Buy and Help to Buy Schemes have been introduced with the aim of boosting the demand for new build properties and to kick-start more housing construction projects.

What is NewBuy?

NewBuy is the Government backed ‘mortgage indemnity’ scheme, which aims to help people with smaller deposits buy a new build home. The scheme was launched in March 2012, at which thousands of people expressed an interest in using NewBuy and the number of reservations and sales are now on the up and rising steadily.

The scheme was developed to help people who had been unable to buy their first new home, or move house, because of the large deposits required to secure a mortgage.

Help to Buy: Equity Loan

With a Help to Buy equity loan, the Government lends you up to 20% of the cost of your new-build home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Help to Buy: Mortgage Guarantee

The Help to Buy mortgage guarantee scheme works in exactly the same way as any other mortgage, except that under the scheme, the Government offers lenders the option to purchase a guarantee on mortgage loans.

Because of this support, lenders taking part are able to offer home buyers more high-loan-to-value mortgages (80-95%).

You will still be fully responsible for your mortgage repayments. So if you have a 5% deposit, you will need to take out and pay back a 95% mortgage.

Even with these options available for first time buyers, things can still be a little confusing. If you have any questions regarding NewBuy, Help to Buy or any of the Beal Home properties please get in touch.