If you are thinking about purchasing your first home, you may be looking for a property that you can secure with a reasonable deposit and affordable monthly payments. For this reason, many first-time buyers opt for a flat, two-bedroom property, or a house that needs renovating.
However, did you know that a larger, semi-detached or detached, high specification property in a popular location could be within your reach?
At Story Homes, we want to support first-time buyers as much as possible. There are various benefits to buying one of our homes as your first – they tend to be more spacious than other new builds, which is useful for families or those thinking about a family in the future. It means that you would be less likely to need to move again, saving a significant amount in stamp duty, solicitors’ and estate agents’ fees and other associated costs.
Mark Finch from Mortgage Pathways, who is on our panel of recommended mortgage advisors for our customers, says: “For first-time buyers, purchasing a flat or smaller property may cost less each month but, whilst property prices are lower, it makes sense to look for the biggest property you can comfortably afford.”
Also, a new build is a blank canvas – you can live comfortably while decorating to your own taste in your own time – and as our homes have high quality fixtures and fittings, you won’t need to change anything in a hurry. New build homes have no upward chain and come with a ten-year NHBC warranty covering structural defects.
Possibly the biggest incentive to buy a new build is the government’s Help to Buy scheme. The government lends you up to 20% of the cost of your new home, so you only need a 5% deposit and a mortgage of 75%. You are not charged interest for the first 5 years and you can repay this loan at any time.
First-time buyers can use the Help to Buy equity loan scheme alongside the Help to Buy ISA – the government will essentially boost your savings by 25%. You can find out more about this here.
Lyndsey Walton, Sales Manager at Story Homes, comments: “We are pleased to be able to offer Help to Buy on a number of selected plots, as well as certain house types that are well-suited to first-time buyers. For example, the ‘Hastings’ at our Dovecote Place development – which is only seven miles from the centre of Newcastle upon Tyne – is a three-bedroom semi-detached property with driveway parking and 955 sq ft of living space. We are currently offering Help to Buy on this specific property.”
Other Story Homes house types that are popular with first-time buyers in the North East include the ‘Kingston’ at Paddocks View, ‘Linden’ at The Woodlands, and ‘Chester’ at Fairfields Manor and St Edmund’s Manor.
Mark Finch provides some top tips for first-time buyers considering a Story Home:
- Get organised: Prior to applying for a mortgage for a new build, collate documents such as passports, proof of address dated in the last three months, last three months of payslips, bank statements and proof of deposit.
- Access your credit file: Lenders will look at your credit file to see any loans and credit cards, so it is helpful for you to know what is showing on your file.
- Direct debits: Small missed payments will have an effect on your mortgage applications. Ensure that all credit cards or store cards are set up with a direct debit to ensure that at least the minimum payment is made.
- Improving your credit score: Use credit, as you have to prove that you can handle credit responsibly.
- Electoral roll: Ensuring that you are registered will increase your credit score. Lenders will use it to help verify who you are.
- Your income: Check your payslips before you apply. When a lender asks for your basic income, only tell them your basic income. Additional incomes all need to be broken down and different lenders will treat each income in a different way.
- Get a decision in principle before you reserve a property: This is important because once you reserve, things move very quickly and you do not have the time to think about your options.
To find out whether Help to Buy is available to you, please visit the page of your chosen development on our website, and contact the Sales Executive using the details provided.
Disclaimer: All information in this article is provided as generic advice and Story Homes accepts no responsibility for action taken as a result. Contact a recommended financial advisor for expert advice.