Posts Tagged ‘halifax help to buy mortgage’
Reporter Lisa Bachelor of the Guardian questions if “buying a new-build home” may “leave you on shaky foundations?”
As the Help to Buy scheme rolls out from 1st April many new homeowners will come onto the market by purchasing new build homes as generous funding for interest free equity loans become available.
It is hoped that the government aided finance scheme just launched will both stimulate the housing market and economy by encouraging builders to build more housing stock and lenders to give mortgages to people who cannot afford a 25% deposit as the government will give a 20% interest free equity loan in addition to the 5% that the mortgagee has.
Certainly new homes are easier to get mortgages for and they are less hassle due to no mortgage chain or structural problems however as Lisa reports there can also be a downside in the quality of workmanship on some new builds
Pros and cons of buying newly built homes.
The Guardian article also covers the benefits and drawbacks of buying new homes which are:
• lack of hassle with maintenance
• blank canvass – a new home offers an empty space for your to simply move in and decorate
• more energy efficient – newer homes are all built with energy efficiency in mind
• NHBC 10 year guarantee and sometimes other benefits
• House price depreciation – like cars newly built houses can lose some value once used and not new.
• Limited Space – new build homes can be deceptively smaller than older homes
• Property build completion dates – when a new build planned property deadline is made it does not always end up being the same in reality
Help to Buy Government Scheme – which banks will lend?
So firstly house availability may be an issue if you cannot find a new build near you however the second issue is who will lend, which mortgage companies can you use? It is a misconception that all mortgage lending institutions will lend against property shared equity schemes as companies such as Santander to not. It is early days but Nat West launched its government Help to Buy package with a new two year fixed rate on LTV of 75% at 3.15%. Also last week Halifax announced a new two year fixed fee mortgage at 3.89% or 3.49% if you pay a fee of £999. It’s always best to shop around and search for mortgage brokers to find the deal that is best for you.
Read the full article here
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