New Build properties

A New Build property is a brand new property that has never been lived in.

New Build properties often appeal to buyers, as they typically come with a warranty such as an NHBC certificate, which protects you if there are any defects in the building work for a specified period after construction. 

You may be able to choose your own fittings and finishes, such as designing your new kitchen and bathroom and new homes can be eligible for Government schemes such as Help to Buy.

One of the main benefits of buying a new-build property is that it is less likely to require the same level of maintenance that you would face with an older property. Your energy bills may well be cheaper too, given that they are usually better insulated than older homes.

The negative side is that getting a mortgage for a New Build home can sometimes be harder than for an older property. Some lenders put stricter limits on the maximum value of a property on which they will offer a mortgage. For example, a lot of lenders restrict you to 85% of the value of a New Build house, or 75% on a flat. In comparison, lenders may be willing to offer up to 95% on an older property.

Our loan to value (LTV) calculator can help you decide what mortgage you require

Help to Buy:

If you’re looking to purchase a New Build property in England and only have a deposit of 5% of the property price to put down, you may be eligible for the Help to Buy equity loan scheme.

This scheme was opened to new applications from 16 December 2020 and will run until 31 March 2023.

Remember, you need a deposit of at least 5% of the purchase price. You can borrow 20% (40% in London) of the purchase price. This amount is interest free for five years. After that there is a 1.75% annual charge, which increases each year by the rate of inflation, plus 1%.

The maximum purchase price for a Help to Buy property depends on what region of England you live in. Our table shows the maximum cap for different regions in England.

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This must be used to buy your main residence and can’t be used to buy a second home or a buy-to-let property.

At Breeze, we can tell you if you qualify and the maximum purchase price you would be able to afford. Then we can recommend the best lender and deal depending on your situation, as well as importantly checking that Help to Buy is available through your chosen lender and you fit their criteria.

Shared Ownership

Shared ownership schemes are a cross between buying and renting, so you don’t own 100% of your home yourself.

You buy a percentage of the house which means you can get on the property ladder and then rent the part you don’t own at a reduced rate. A housing association will usually own the rest of your property.
This means your ownership will be leasehold.

With shared ownership, you get to choose how much you can afford. Typically, this is likely to be between 25% and up to 75% of the property value. It is worth noting that you have the option to buy a bigger share in the property at a later date, or even buy the housing association’s share completely.

You take out a mortgage to buy your share and you pay rent to the housing association every month on the portion that they own. You’ll still need to put down a deposit, but as you’re buying a percentage of the house, the deposit will be smaller.

Most of the homes are newly built, but some are properties being re-sold by housing associations.

You will see that a lot of lenders insist on a special shared ownership mortgage with differing rates and some do not offer shared ownership mortgages at all. At Breeze we can help, as through our experience we know what lenders to approach and can source you the best deal.

Can I apply for shared ownership?

Key points before you can be considered:

It is no secret shared ownership mortgages are difficult to come by. At Breeze, our mortgage experts can help you find one. We can answer your questions and there’s no obligation to use us.