The property market is constantly evolving, with prospective homeowners on the lookout for the best opportunities to secure their dream home. And with things like rising house prices and higher cost of living, it is becoming more difficult for people to make that leap onto the property ladder. I myself have worked in mortgages for 8 years, and 4 of these years were specialising in the New Build Home market. I saw the Help To Buy Scheme and The Shared Ownership Scheme rise in popularity. I saw how much both schemes benefited hopeful home buyers who otherwise would have struggled with a regular mortgage. Unfortunately the Help To Buy Scheme ended a few years ago, and until recently, there had been very little help for New Build home buyers.
That was until the ‘Own New’ rate reducer scheme appeared – a fantastic initiative designed to make purchasing a new build home more accessible for many buyers. Our brokers at Oportfolio Mortgages are registered to arrange mortgages for Own New scheme buyers, and we can’t wait to help. In this blog I will use my expertise in the New Build home market to explain what exactly the Own New scheme is, and why it is making ripples in the mortgage world.
What is the Own New Rate Reducer Scheme?
The Own New scheme is a new initiative aimed at supporting the purchase of newly built homes. It offers various incentives and financial assistance to eligible buyers, making the dream of owning a brand-new property more attainable. This scheme not only boosts the construction industry but also provides buyers with modern, energy-efficient homes. If the property you are looking at purchasing is eligible, you could benefit from one of two products;
- Own New rate reducer scheme – This product potentially allows you to reduce your interest rate by up to 4%, for the initial period. The incentive from a developer effectively part-pays the lender’s interest for the initial term, meaning a cheaper mortgage is delivered to the borrower.
- Own New deposit drop – This product potentially allows you to get on the property ladder with as little as 5% deposit.
Your mortgage advisor will carefully explain both products to you and will help you to assess which of the products best fits your needs and which one you are eligible for.
Who is Eligible for the Own New Rate Reducer Scheme?
Unlike a lot of other purchase schemes, it doesn’t just come down to ‘who is eligible?’ but also ‘what property is eligible?’ as not all property developers are registered under the scheme. If you are looking at buying a New Build home, then always check with the developer if any schemes are available on the homes. In terms of personal eligibility, here are some criteria points that you need to meet:
- First-Time Buyers: Individuals or couples purchasing their first home can benefit significantly from the scheme.
- Current Homeowners: Existing homeowners looking to move to a new build property can also take advantage of the incentives.
- Financial Criteria: Buyers must meet specific financial criteria, including a minimum credit score and a stable income, to qualify for the scheme.
Your mortgage advisor will be able to check your financial eligibility as normal when you discuss your mortgage options with them.
How Oportfolio Mortgages Can Help With The Own New Rate Reducer Scheme
At Oportfolio Mortgages, we specialise in helping people achieve their home ownership ambitions, regardless of how they do it. Our advisors are registered with the official Own New scheme, which means that we are authorised to advise on and arrange Own New purchase mortgages. Our new advisor Remmea Moohan is an officially registered and qualified Own New mortgage advisor, and she couldn’t be more happy that there is a new scheme available for new build home buyers! She had this to say:“I think that it is simply fantastic that there is finally a new scheme out there to help people purchase their new home. Help to Buy was really beneficial for over 10 years, and shared ownership continues to do a great job, but we were all quite worried when HTB came to an end. I see own new becoming a great tool for buyers in the future, and something that will become a big hit.”
Here’s how we can assist you in arranging a mortgage through the Own New scheme:
- Expert Consultation: Our team of mortgage advisors will provide a comprehensive consultation to understand your financial situation and homeownership goals.
- Tailored Mortgage Solutions: We will identify the best mortgage products available under the Own New scheme, tailored to your needs.
- Application Assistance: Our experts will assist you with the entire mortgage application process, ensuring all paperwork is correctly completed and submitted on time.
- Ongoing Support: From the initial consultation to the final mortgage approval, we offer continuous support, answering any questions and addressing concerns that may arise.
The Experience Of Purchasing A New Build Home
New Build Houses Under Construction
Buying a new build home comes with its unique set of advantages and challenges. Understanding these can help make the process smoother and more enjoyable.
Advantages
- Modern Design: New build homes often feature the latest architectural designs and modern amenities.
- Energy Efficiency: These homes are typically built to higher energy efficiency standards, resulting in lower utility bills.
- Customisation: Buyers often have the opportunity to choose finishes and fittings, personalizing their new home to their taste.
- Warranties: New build homes usually come with warranties, providing peace of mind regarding potential repairs and defects.
Potential Challenges
- Waiting Period: There can be a waiting period while the property is being constructed, which requires patience and planning. Especially with organising your mortgage and making sure everything happens at the right time in the process.
- Snagging Issues: Newly built properties can sometimes have minor issues or defects that need addressing after completion.
- Financing Complications: Securing a mortgage for a new build can be more complex, with different lenders having varying criteria and processes. That’s why you should always consult a mortgage specialist to help you to arrange the right mortgage for your circumstances.
Why Purchasing A New Build Can Be Tricky
The process of purchasing a new build home can be intricate due to several factors:
- Valuation Concerns: Lenders may have stricter criteria for valuing new build properties, impacting the mortgage amount available.
- Mortgage Deadlines: The timeframe for completing a mortgage on a new build can be tighter, necessitating swift action and prompt decisions.
- Builder Timelines: Delays in construction can affect move-in dates, requiring flexibility and contingency planning.
Speak To A New Build Mortgage Advisor Today
In my opinion, the Own New rate reducer scheme presents a fantastic opportunity for both first-time buyers and existing homeowners to purchase a new build home, in an especially tricky property market. While the process can be complex, the benefits of owning a modern, energy-efficient property make it worthwhile. At Oportfolio Mortgages, we are dedicated to helping you navigate this journey with ease and confidence. As registered Own New scheme mortgage advisors, we can’t wait to help you to purchase your new home. Contact us today to learn more about how we can assist you in securing your dream property through the Own New scheme.
