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Looking to buy a new home in the New Year?
MANY people take the opportunity a New Year brings to make some changes. Moving house or becoming a homeowner for the first time is a common resolution in January.
If you are about to start the search for your perfect home (after speaking to a fee-free mortgage broker to agree a budget first) then it’s time to consider the type of home you want.
Most want a new build property over a period home, according to a new study.
Although buyers love the character, larger rooms and bigger gardens of older style properties, the majority at 23% would still opt for a new build.
While you might love a sash window and a period fireplace, here are eight reasons to purchase a brand new home:
The scheme allows you to buy a new build home with just a 5% deposit, which is then topped up by 20% (or 40% for London) in the form of an equity loan from the government, effectively giving you a 25% deposit. So, if you wanted to buy a house in England for £200,000 with a 5% deposit and a 20% Help to Buy loan you would need a £10,000 deposit, a mortgage of £150,000 and a £40,000 Help to Buy equity loan.
Repairs and redecoration costs in a new home are going to be minimal in the first few years as everything is new. Snagging is a common issue with a new build which can be easily dealt with if you’re buying from a decent developer.
You can often choose fixtures and fittings in bathrooms and the kitchen- so your home is customised to your own taste and has a unique feel. You might even have a chance to choose colour schemes or flooring. See what you can negotiate.
Energy efficiency is factored into new homes as a matter of priority. It means that the running costs of a new home can be much cheaper than an older property.
New homes built in England and Wales today are 65% more energy efficient than their Victorian equivalent, according to newhomes.co.uk. It claims they are roughly 50% cheaper to run per year, adding up to annual savings of between £440 for a 1-bed ground floor flat, and £1,410 for a 4 bed detached house.
If you have somewhere to sell, developers will often make it easier for you by offering an exchange package or to pay stamp duty – particularly when it comes to their end of year when they need to meet targets.
New homes should come with a warranty. Should the builder belong to the NHBC Buildmark scheme, your new home will come with two years’ builder warranty and then a further 8 years’ insurance provided by NHBC against damage to the home caused by the failure of your builder to build specific parts of the main structure to NHBC Technical Requirements. Check which scheme your builder belongs to.
Buying an empty home means that there are no delays to factor in from any other party – unless you have somewhere to sell. Even if that’s the case, the chain stops with you, meaning potentially less hassle – and a quicker move.
Getting your mortgage offer should be straightforward, particularly if you have a broker on your side.
And if you’re using the Help to Buy scheme, you can access mortgages at a maximum loan-to-value of up to 75% instead of 95%, meaning access to typically more favourable interest rates.
Make sure you use a fee-free broker such as Milton Keynes mortgage brokers Visionary Finance to avoid paying hundreds of pounds in avoidable fees.