With low-deposit mortgage loans plummeting as a result of the pandemic, first time buyers looking to establish their place on the property ladder in Northamptonshire are being reminded that they can still use the Help to Buy scheme.
David Wilson Homes is highlighting in particular its Overstone development, The Avenue, where there are still three bedroom homes available that can benefit from the scheme.
There were 1,172 mortgage deals for those with a deposit of 10% or less last September compared with fewer than 100 now, according to the financial information firm Moneyfacts. This 90% decline in mortgages makes it so much harder for first time buyers to buy their home.
But with Help to Buy the requirement of a 5% deposit makes securing a home easier for those who don’t have a large down payment. Since the initiative launched seven years ago it has helped more than 250,000 families to get on the property ladder.
The government-backed scheme is still available on selected properties at Willow Grove, and the leading developer has revealed its key benefits for those eager to make a move.
The current Help to Buy scheme is available for completions until 31st March 2021 and both existing homeowners and first time buyers can benefit. Then from 1st April 2021 there will be a new Help to Buy scheme, with regional price caps which will be for first time buyers only.
Adrian MacDiarmid, Head of Mortgages at parent company Barratt Developments, said: “It’s no wonder that Help to Buy is such a compelling offer for many of our customers. They can benefit from a reduced deposit requirement, lower monthly mortgage payments and a 20% Government loan that is interest free for five years.”
Some of the advantages of Help to Buy include:
Lower deposit means you can move sooner
For many people trying to save for the minimum 10% deposit needed on most homes can be a struggle and seems like an unachievable goal. By using the Help to Buy scheme, you can save for your new home and get on the property ladder in a shorter amount of time as only a 5% deposit is required.
This can make a big difference to a lot of homebuyers who thought they couldn’t purchase a home, and will help those planning a family to secure a larger property for their first move.
75% mortgage allows you to access lower interest rates
With 20% of the mortgage being in the form of an equity loan from the government and 5% being your deposit – you only need to borrow a 75% mortgage. This means you could get access to more competitive interest rates compared to a standard 85% mortgage.
Interest free loan for five years
The 20% equity loan on your home is interest free for the first five years, giving you peace of mind that you can settle into your new home and adjust to your budget before having to think about interest payments.
New build homes are a blank canvas
Help to Buy is exclusive to new build homes, meaning house hunters looking to use the scheme will purchase a new home with a blank canvas to make their own. These properties are ready to move into with no DIY required, meaning you can focus on making your mark in your new home rather than worrying about any maintenance.
David Wilson Homes’ new build properties also come with a 10-year NHBC structural warranty giving you peace of mind when you move in.
Jason Hearn, Sales Director at David Wilson Homes South Midlands, said: “With the availability of low-deposit mortgages declining so much recently, we’re here to reassure first time buyers that schemes such as Help to Buy are still available.
“For property seekers in the area, it can be hard to know which moving scheme may suit them best and whether Help to Buy will offer them the best deals or not. We’ve found the scheme to be extremely successful at a number of our developments with its ability to help first time buyers onto the property ladder.”