In 2017, I found out I was expecting my first child and myself and my partner knew we HAD to move. We were living in a two bed ground floor flat at the time when we found out, and it wasn’t the most ‘roomy’ of flats to bring up a child. So we made the decision to move home. If only it was going to be as simple as that…
We searched high and low. We lost buyer after buyer. We even lost more money than we first thought, but in May 2018 we finally moved into our brand, spanking new four bed home.
It was going very badly UNTIL we decided to look into the Help to Buy scheme.
It’s our first family home and we decided to go down the route of Help-to-buy to make the transition as affordable, and stress-free as possible, plus we wanted a BRAND NEW base to work with.
The pros of going for a new build clearly outweigh the cons. I have always wanted to own a house, but a house that I could easily transform into a home. Everything is sparkling, clean and white. All we had to do was move our items in and decide on how to make this nice clean slate, a very liveable space that screamed US! We decided to do one room at a time, and so far in 7 months we have completed two of the rooms in our house. We got to choose our flooring, bathroom tile colours and our kitchen appliances (100% went for the dishwasher). It was so easy to decorate the rooms how we wanted them as they were basically ready to paint, wallpaper and bang in our photos and decorative swans.
The baby nursery
The front room
We still have a long way to go, but at least the rooms all look tidy, clean and ready to just be furnished and decorated in our own way. There was no scraping of wallpapers, or pulling out old bathrooms. Everything is just ready to be used and utilised in your own way. I would highly recommend a new build for a first time buyer as it will cost you less money all round.
So I wanted to help others that may be weighing up their options when it comes to moving home (as it’s not as easy as you think but there are some schemes such as Help to Buy that do make it that little bit easier).
What is Help To Buy?
It’s a scheme designed to help individuals or families with a deposit of 5% and wish to purchase a new build property to get on the housing ladder. The Government lend you up to 40% (in London boroughs or 20% if elsewhere) of the property price and after five years, you start paying interest on the loan.
Who is eligible?
This scheme is open for first time buyers and home movers with a deposit of at least 5%. They have to also qualify for a mortgage on the remaining amount minus the HTB loan. This scheme is due to run until 2021, so explore your options whilst you still can. The house that purchasers wish to buy must also be worth less than £600,000 or £300,000 in Wales.
How to apply
If purchasers search for their local Help to Buy housing agent then they can get in contact and find out about properties available. The Government will then need to approve the application. Upon doing so, the monthly costs will be cheaper on the mortgage for the first 5 years, which gives a first time buyer a chance to get settled and ready to start buying a bigger mortgage in a few years time. So although the property is in the home owners name, if the purchasers want to sell or alter the property then they have to seek approval for the Help to Buy agents due to the property being 40% owned by the Government.
When do you pay the loan back?
It must be repaid when the house is sold or at the end of the mortgage term, but that depends on whatever comes first. The Government will take up to 40% of the sale price, whether higher or lower. However, the home owner can pay some or all of the loan off once the five years are up.
- Minimum 5% deposit
- New-build homes only
- First time buyers or home movers
- Equity loan of up to 20%
- Maximum property value of £600,000
- Must be your sole home
To search for some sparkling new developments near you that fall under the Help to Buy scheme visit Just New Homes
I hope this has helped you make a wise decision to go NEW with your move!