Anyone already reserved a newbuild since 1st April 'Help to Buy'?

shop-to-drop

We have been planning to buy sometime in the next few months and very likely a newbuild. We have done much research on pricing etc but now since the introduction of 'Help to Buy' feel our negotiating power will be diminished somewhat.

I have spoken to a broker and we would be eligible to take advantage if we wanted to but feel probably now we are going to have to pay way too much for newbuild as it seems to have really kicked off sales in the area we are looking which was previously struggling to sell very overpriced stock.

Are any of you one of those who have already taken advantage of this scheme and reserved? Did the developer consider that Help to Buy was an incentive (despite the money coming from Government not them) and therefore unprepared to negotiate on price/extras etc?

Why did you go for it? What are the downsides? Be interested to hear anyones story to give us an insight into whether to consider this or concentrate more on the secondary market now.

kingstreet

Was the developer part of FirstBuy?

If not, have they applied to the local HCA Homebuy Agent to become part of HTB?

Are you aware there is only one lender, Halifax, signed up to HTB Equity Loan, so far?

In my experience, developers are putting stuff through Newbuy and if it doesn't pass an AIP, it is suggesting HTB Equity Loan.

You will find there are very few "deals" around if you are not close to a quarter or year-end, for that particular developer.

thedalmeny

We've bought our first home using it. My wife and i are both 29, have a 3 year old son.

We have reserved 4 bedroom detached new build property through 'Help To Buy'. Had an assessment and credit check to ensure eligibility through IFA, fill in paperwork tomorrow.

Mortgage rate i've been quoted is 3.49% (Good when you consider most NewBuy rates were 4.69% - 5.39%). I'm looking at 15% loan provided. It attracted me as it meant i could retain my capital while wife works part-time, within 2-3 years she should be back into her profession and i can use that capital to pay off the interest free 15% given.

It's a good scheme providing you know you'll be able to pay off the loan. Don't get wrapped up in how low your mortgage is going to be during the 5 year period, use that as a period to save for the loan repayment. With no accounting for salary increases or my yearly work bonus (around 8k), i plan to have it paid off by year 6.

We literally have no other debt, except for £500 on a CC which is kept ticking along for credit rating purposes (We both have a 980+ rating on Experian). Cars have always been saved for and purchased cash etc... Quite weird going from somebody who is very sensible and never has debt to buying a house, just got a little sick of renting.

I negotiated 10k off the list price, 192k down to 182k, i also got carpets, turf and integrated fridge & freezer thrown in.

Unsure of whether i'd of been able to push for more, my feelings would be no since even at 180-190k there is little to nothing in the surrounding 5-10 mile radius at that price and size.

I'm personally happy with the price i'm paying when i look at current price in surrounding area and what properties have been selling for on Zoopla.

I'd imagine it'll depend on various factors on how much a discount developers will throw in.

TMC35

We were considering this but in the area we live the new builds we have viewed seem small and overpriced.

We are now concentrating on pre-owned houses, we will be in a position to look in a few months and I am hoping that sales of pre-owned houses may have slowed down towards the end of the year as people may be waiting for the governments mortgage guarantee scheme to start on 1st Jan 2014.....

As FTB's living with parents currently I am hoping we will be able to maybe get ourselves a much better deal this way..... this is my hope anyway. I think if we continued to pursue the new builds we would end up paying over the odds for a house that wasn't worth the asking price to start... this is just my opinion though as a 3 bed new build where I live is in excess of £300k.

kingstreet

thedalmeny wrote: »

I'm looking at 15% loan provided

Are you sure this is HTB? It sounds more like a developer's shared equity scheme. HTB AIUI is based on 10% or 20% equity loan based on circumstances, nothing inbetween.

Have you completed a Property Information Form and sent it, together with yo Reservation Form, to your local HCA HomebuyAgent?

If no, it's probably a developer scheme instead.

retepetsir

thedalmeny wrote: »

We've bought our first home using it. My wife and i are both 29, have a 3 year old son.

We have reserved 4 bedroom detached new build property through 'Help To Buy'. Had an assessment and credit check to ensure eligibility through IFA, fill in paperwork tomorrow.

Mortgage rate i've been quoted is 3.49% (Good when you consider most NewBuy rates were 4.69% - 5.39%). I'm looking at 15% loan provided. It attracted me as it meant i could retain my capital while wife works part-time, within 2-3 years she should be back into her profession and i can use that capital to pay off the interest free 15% given.

It's a good scheme providing you know you'll be able to pay off the loan. Don't get wrapped up in how low your mortgage is going to be during the 5 year period, use that as a period to save for the loan repayment. With no accounting for salary increases or my yearly work bonus (around 8k), i plan to have it paid off by year 6.

We literally have no other debt, except for £500 on a CC which is kept ticking along for credit rating purposes (We both have a 980+ rating on Experian). Cars have always been saved for and purchased cash etc... Quite weird going from somebody who is very sensible and never has debt to buying a house, just got a little sick of renting.

I negotiated 10k off the list price, 192k down to 182k, i also got carpets, turf and integrated fridge & freezer thrown in.

Unsure of whether i'd of been able to push for more, my feelings would be no since even at 180-190k there is little to nothing in the surrounding 5-10 mile radius at that price and size.

I'm personally happy with the price i'm paying when i look at current price in surrounding area and what properties have been selling for on Zoopla.

I'd imagine it'll depend on various factors on how much a discount developers will throw in.

I've been reading the T&C's and thought you were only allowed to repay the government loan if the mortgage had been paid off in full, i.e. no paying it off early?

TMC35

thedalmeny wrote: »

We've bought our first home using it. My wife and i are both 29, have a 3 year old son.

We have reserved 4 bedroom detached new build property through 'Help To Buy'. Had an assessment and credit check to ensure eligibility through IFA, fill in paperwork tomorrow.

Mortgage rate i've been quoted is 3.49% (Good when you consider most NewBuy rates were 4.69% - 5.39%). I'm looking at 15% loan provided. It attracted me as it meant i could retain my capital while wife works part-time, within 2-3 years she should be back into her profession and i can use that capital to pay off the interest free 15% given.

It's a good scheme providing you know you'll be able to pay off the loan. Don't get wrapped up in how low your mortgage is going to be during the 5 year period, use that as a period to save for the loan repayment. With no accounting for salary increases or my yearly work bonus (around 8k), i plan to have it paid off by year 6.

We literally have no other debt, except for £500 on a CC which is kept ticking along for credit rating purposes (We both have a 980+ rating on Experian). Cars have always been saved for and purchased cash etc... Quite weird going from somebody who is very sensible and never has debt to buying a house, just got a little sick of renting.

I negotiated 10k off the list price, 192k down to 182k, i also got carpets, turf and integrated fridge & freezer thrown in.

Unsure of whether i'd of been able to push for more, my feelings would be no since even at 180-190k there is little to nothing in the surrounding 5-10 mile radius at that price and size.

I'm personally happy with the price i'm paying when i look at current price in surrounding area and what properties have been selling for on Zoopla.

I'd imagine it'll depend on various factors on how much a discount developers will throw in.

I'm suprised they have accepted you on this scheme as from reading all the information from the government they have stated that they will only help people who are unable to buy a suitable home unaided...

Good luck to you though as it looks as though this will be very beneficial to you whilst raising a young family, I just find it strange they would lend you the money when you effectively have it already...

thedalmeny

kingstreet wrote: »

Are you sure this is HTB? It sounds more like a developer's shared equity scheme. HTB AIUI is based on 10% or 20% equity loan based on circumstances, nothing inbetween.

Have you completed a Property Information Form and sent it, together with yo Reservation Form, to your local HCA HomebuyAgent?

If no, it's probably a developer scheme instead.

Definitely 'Help To Buy'

We went for 20% in the end due to mortgage rate, he was giving me quotes for 15% though.

Took the 3.89% rate raising to 3.99% after 2 year fixed term. Could of gone for the 3.49% 2 year fixed but with a £1000 arrangement fee i'd actually be spending more.

retepetsir wrote: »

I've been reading the T&C's and thought you were only allowed to repay the government loan if the mortgage had been paid off in full, i.e. no paying it off early?

It's the same as Firstbuy, you can pay it back in two parts or all at once. Either two payments of 10% of your properties value or one payment of 20% of your properties value.

TMC35 wrote: »

I'm suprised they have accepted you on this scheme as from reading all the information from the government they have stated that they will only help people who are unable to buy a suitable home unaided...

Good luck to you though as it looks as though this will be very beneficial to you whilst raising a young family, I just find it strange they would lend you the money when you effectively have it already...

IFA showed me the calculation and it's based on a percentage of your income to mortgage repayment. He says the uptake has been considerable, as help to buy doesn't have the kind of restrictions that Firstbuy did.

My wife only works part time and earns very little, essentially the mortgage is done based on my income and is not accounting for my yearly bonus (Around 8k per year). This allows us to qualify.

Your savings do not factor into your application.

shop-to-drop

Thanks for all the relays so far. Off to work now so one quick question only. does anyone know if you have to stay with Halifax after the fixed rate ends? I was quoted on the 3.49 rate no mention of the £1000 arrangement fee. Of course I guessed there would be one, but would have been nice to be told.

thedalmeny

shop-to-drop wrote: »

Thanks for all the relays so far. Off to work now so one quick question only. does anyone know if you have to stay with Halifax after the fixed rate ends? I was quoted on the 3.49 rate no mention of the £1000 arrangement fee. Of course I guessed there would be one, but would have been nice to be told.

3.89% rate didn't come with an arrangement fee.

Yes you can switch after the fixed rate ends.

shop-to-drop

We are going to look at it on Saturday so will have more idea where we stand then. So far has all been email and phone to mortgage advisor. We have a house to sell so not able to negotiate just yet.