New Build Mortgages

The maximum property price is the full purchase price. You cannot change or negotiate this price.

Your homebuilder will be able to confirm if the home you want to buy is within the price range.

The equity loan, the deposit you have saved, and your repayment mortgage cover the total cost of buying your newly built home.

You can repay all or part of your equity loan at any time. A part payment must be at least 10% of what your home is worth at the time of repayment.

• You must repay your equity loan in full:
• at the end of the equity loan term
• when you pay off your repayment mortgage
• when you sell your home

if you do not comply with the terms set out in the equity loan contract you could be asked to repay the loan in full.

When you take out an equity loan, you do not pay interest for the first 5 years. When you start to pay interest in year 6, it is on the amount you borrowed.

The monthly interest payments you make do not pay off your equity loan. You do not pay monthly equity loan repayments to reduce the amount of equity loan you have borrowed.

An equity loan is secured against your home by a legal charge in the same way a repayment mortgage is.

You may pay back more than you borrow, the percentage you borrow is based on the market value of your new home when you buy it.

When you repay your loan in full or in part, the amount you pay back is worked out as a percentage of the market value, at the time you choose to repay.

If the market value of your home rises, so does the amount you owe on your equity loan. And if the value of your home falls, the amount you owe on your equity loan falls too.

Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan or other loans secured against it. Consider seeking independent financial advice with Mortgage Hand before making any financial decisions.

Shared Ownership

What is a Help to Buy: Shared Ownership?

Help to Buy: Shared Ownership gives those who can’t afford to buy a home outright the opportunity to buy a share of it. This can be between 25%-75% of the home’s value.

You will pay rent on the percentage of the property that you do not own. The amount of rent paid is agreed and fixed at the outset, and there is a maximum amount by which it can increase each year.

The more of the property you own, the lower your rental payments will be.

https://www.helptobuyagent1.org.uk/help-to-buy-shared-ownership/

Over time you can purchase more shares in your property – this is known as ‘staircasing’.  This can be done at any time after initial purchase and it will reduce the amount of rent you pay as the share of the home that you do not own will have got smaller.

You can buy a shared ownership home by taking out a mortgage and using your savings.  Any deposit you pay will be smaller than if buying outright as you will not be purchasing the whole of the home.

Please remember, your home may be repossessed if you do not keep up repayments on your mortgage or any loan secured against it. Consider seeking independent financial advice with Mortgage Hand before making any financial decisions.