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Ways to Build a New Home

Because you are buying from a builder and not an individual owner, those builders may be able to offer schemes and incentives, allowing their customers to move forward with a purchase. For example, builders may offer help with a deposit or offer shared equity schemes, meaning you could hold back payment on a percentage of the property's value. Builders may also offer part exchange deals.

Deposit paid

Quite simply the builder may offer you a cash incentive to help fund your deposit or pay for other costs involving moving house. These cash incentives are paid to your solicitor on completion and will need to be declared to your mortgage lender if you are applying for a mortgage. Typically cash incentives can be up to 5% of the purchase price of your new build home.

Assisted sale

Finding your dream new build home is the easy part. It's selling your old home that could be a struggle. To try and take the frustration away many builders now offer help in selling your own property. Put simply, they will help you sell your home by getting you the best deal, arranging for independent valuations of the property. Based on the average, they agree an asking price with you and the minimum you're prepared to accept. They will then actively market your home through a trusted estate agents and their sales team to try to secure an early sale. The service is free and the builder takes care of all your estate agent's fees and marketing costs, so there's no hassle.

Part exchange

If you want to buy a new build home, your chosen builder may offer a part exchange scheme, where they purchase your home from you and sell it on. The big advantage to you is that you'll sell your home quickly as there is no need to deal with estate agents, arrange viewings and negotiate with multiple potential buyers. You can also relax as it's 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 rules and regulations.

New Buy

The New Buy scheme is designed to help overcome the deposit gap for new build home buyers.

It is aimed at first time buyers and those who already own a home but who only have funds for a 5-10% deposit on the new build home they wish to buy. The lenders participating in the scheme will provide a 90-95% loan-to-value mortgage for buyers meeting specific qualifying criteria.

The scheme allows lenders to offer these high loan-to-value deals because they will be operated by the house building industry and the banks and building societies. Working in partnership with the Government, the scheme protects the lenders against losses in the unfortunate event of repossession without the need for you to pay any increased insurance premiums.

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