Saving up for a deposit on your first home doesn't have to be that difficult, if you know how.
There are lots of perks to buying a new build property which makes them a popular option for many buyers, such as they’re more energy efficient so therefore have lower running costs, and they also come with a 10-year building warranty, so you’re protected if anything were to happen during this time.
In addition to this, there are also other incentives that the builder may offer you, if you were to buy a new build house.
If you’re buying a new build straight from a developer, rather than individual owner, the builders might be able to offer you an incentive in an attempt to woo potential buyers. The incentives can be things such as helping put money towards a deposit, part-exchange deals or shared equity schemes.
The builder may offer you a cash incentive to help fund your deposit, or pay for other costs involved in moving house. These cash incentives are paid to your solicitor on completion and will need to be declared to your mortgage lender if you’re applying for a mortgage. Cash incentives can be up to 5% of the purchase price of your new build home.
Trying to sell your existing home can sometimes be frustrating so many builders are now offering their help.
They do this by finding you the most appropriate deal and arranging for independent valuations of the property. Based on the average, they agree an asking price with you and the minimum that you are prepared to accept.
Next, they’ll market your home through an estate agent and their own sales team to try and secure an early sale. The service is free and the builder takes care of all your estate agents fees and marketing costs, so there’s no hassle involved.
If you want to buy a new build home, your chosen builder may offer a part-exchange deal (PX deal), where they purchase your home from you and sell it on. The advantage to you is that you will sell your home quickly as there is no need to deal with estate agents, arrange viewings or negotiate with multiple potential buyers. You can also relax as it is a definite sale and you’ll avoid property chains as the builders will have the cash ready to invest.
To have any chance of qualifying for a part-exchange deal, you need to be a current homeowner and you must be moving to a new build home. In addition, each builder will most likely have their own set of terms for these transactions.
Many builders offer discounts on the buyers costs of purchasing a new build home, particularly towards stamp duty and legal fees, and sometimes even white goods for the kitchen, or the landscaping of gardens are paid for as an extra incentive to prospective new build buyers.
Searching for your dream home can take time, but with our top things to look out for, your property search can be made much easier.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.