No matter if it is your first house or your third, buying a house is more often than not, one of the biggest purchases you will make. The feeling of getting the keys to your house and unlocking your front door for the first time cannot be compared to anything else.
It’s no secret that buying a house is a stressful and daunting process for those involved -from the more experienced individuals already on the property ladder to the first-time buyer. Although it is such an exciting process in anyone’s life, it is often ruined by the small menial pieces of paperwork and endless conversations with solicitors, estate agents, and banks.
We wanted to make sure the excitement of buying your new house isn’t ruined and try to make the process as smooth as possible for you. As such, here are some key areas you might like to consider when you are buying a new build home. From the benefits of buying a new build to mortgages on new build, this article is designed to help you as much as possible.
What are the benefits of buying a new build home?
With the extensive development of newly built homes up and down the country to tackle the need for more affordable homes; new build homes are becoming an increasingly popular purchase for first-time buyers. But what are the benefits of a new build home?
- Maintenance and redecoration costs are kept to the minimal. New build homes are built to the latest specifications, so major repairs and upgrades should not be necessary for the first couple of years.
- Lower running costs. New builds are often more energy-efficient and designed to increase the light that enters your home. This means homeowners can enjoy reduced energy bills and costs of running the house.
- Personalisation. If you are buying an off-plan home, there is a high possibility you can choose the fixtures and finishes you would like.
- Guarantees. New builds usually come with guarantees, as well as companies providing significant warranties and affordable insurance for new homes.
- Help to Buy (First Time Buyers).
Help to Buy
One of the biggest advantages of buying a new build home as a first-time buyer is the Help to Buy Scheme introduced by the government in 2013. The Help to Buy scheme helps first-time homebuyers get a property with just a 5% deposit and they can borrow 20% of the purchase price interest-free for the first five years. The Help to Buy Scheme is designed to bridge the gap that first-time buyers may have when trying to take the first step onto the property ladder. To see how the Help to Buy scheme can benefit you, it would be worth further investigation by visiting the Help to Buy website for more information.
New Build Mortgages.
Getting a mortgage for a new build can sometimes be harder than for an existing property. This is because some lenders have put strict limits on the maximum value of a property that they will offer a loan for. If this is the case, you may only be able to receive a loan for 85% of the new build property.
Moreover, it is important to consider the timing of when you apply for the mortgage on your new build. Most mortgage offers tend to be time restricted to 6 months, which can cause an issue if you have bought a property that hasn’t been completed yet or the projected date has been pushed back. If you are unsure about the mortgage options available to you, you may benefit from receiving independent mortgage advice.
Look beyond the show home and the marketing materials.
Show homes and marketing materials will only provide you with one side of the new development and will not be a completely accurate representation of the rest of the properties available. This is because they are designed to be a hard selling tool, so it is advisable to take these with a pinch of salt. The home you have bought or are planning to buy will be in a different plot and will more than likely have a different floor plan to the property they are showing.
If you have the opportunity, it is advisable that you visit your property while it is in the construction phase. This will help you to gain an understanding of the actual layout and size of the property. Furthermore, this is your chance to chat with the development agency about all the fine details of your property which may not be listed in the marketing and sales documents. The more information you can receive the better.