Helping first time buyers
The Help to Buy scheme opens up all kinds of possibilities for first time buyers. Applicable for new or existing properties priced up to a value of £600,000, a Help to Buy loan can provide funding for up to 20% of the purchase price of a property, helping you to buy with only a 5% deposit.
There are no fees for the first five years, so a Help to Buy loan also has the effect of reducing your overall monthly outgoings, versus paying a fee in other shared ownership deals, where interest or rent is payable on the share owned by the third party – for instance the property developer or housing association. This may mean that you could possibly afford to buy a new build apartment at a higher price range than you originally imagined, although this is limited to 4.5 times income and you can’t own another property, or let the property out.
Considering time-outs and under-valuations
In a competitive market, many desirable new build apartments sell off-plan or at an early stage, long before the building is ready to occupy. A six-month mortgage offer may time-out before you are ready to complete your purchase.
With new-build apartments, valuations on what the finished property will be worth can vary considerably from the asking price demanded by the developer. Knowing which mortgage provider is likely to value higher can be the difference between securing your desired apartment and missing out because the mortgage offer falls short.
John Charcol – finding you the right new build mortgage
As mortgage experts with years of experience, we can help you to secure a new build apartment mortgage, quickly and efficiently:
- As a first time buyer, we can help you to secure the best available rate on the right Help to Buy mortgage to best suit your circumstances
- We can time a mortgage offer to ensure that it is most likely to be valid when your apartment is ready for occupancy
- We know which mortgage providers are most likely to meet the valuation you need for your purchase
- If your credit score is not brilliant, perhaps because you have moved around a lot or changed jobs frequently, we can approach lenders who will look beyond the score
To find out how we can help with your new build apartment mortgage, call us on 0344 346 3672 or enquire now.