Useful saving schemes for buying a new build home
From size to location to budget, there are lots of factors to consider when searching for a new home. Choosing between old and new properties is a big part of that decision, but the Government saving schemes available for new build homes could help you save on the one that just ‘feels right’, and help you get moving sooner.
There are plenty of key factors which come into play with your home buying decision – one of them being whether you need help from Government schemes.
Particularly for first-time buyers, Government schemes can make home buying achievable, and therefore may steer those searching for a home in a certain direction.
That direction is often New Build Homes.
So what schemes are available for new build developments?
Help to Buy Equity Loan
The Help to Buy scheme is currently available for both first-time buyers and existing homeowners. It works by the Government lending up to 20% of the total cost of a home. Meaning you will only need a 5% deposit and a 75% mortgage. There will be no fees on the borrowed 20% for the first 5 years.
The scheme is slightly different for those in London, where you can borrow up to 40% of the purchase price.
This scheme is available for any new build property in England, up to the value of £600,000, until March 2021. It will then be replaced with an updated version, for first-time buyers only. There are also schemes available in both Scotland and Wales.
Help to Buy ISA
A specific savings scheme for first-time buyers was set up by the Government in 2015, in a bid to help young people get on the housing ladder. It works by the Government providing a tax-free £50 for every £200 saved each month, up until a maximum of £12,000.
This can then be used towards buying a new build home. Read more information on the scheme here.
Help to Buy Shared Ownership
This option is available for those who might need some support with a mortgage. Help to Buy Shared Ownership allows you to buy a share of your home, and then pay rent on the remaining share. The share can be between 25% and 75% of the home’s value. Then, as time goes on, you are able to buy bigger shares when you are ready and can afford to.
This scheme is available for those with a household income of less than £80,000 a year, and is mainly for new builds, or re-sold housing association properties.
Choosing a New Build Home
There are a range of schemes available for new build homes. Click here to find out more information and discover the right choice for you.