Help to buy + help from builder??

CluelessFTB_2

Hello,

I was hoping for a bit of information really!

I was under the impression with the new Help to Buy scheme on new builds that the builder was unable to help you financially or with stamp duty or legal fees? But they could help you with extras for the home (carpets, upgrades etc).

I have had an email from Barratt today saying if we reserve our home in April with the Help to Buy scheme they will pay our stamp duty and contribute £750 towards our legal fees.

Can someone confirm to me what help they are allowed to offer us? I am assuming they are not able to give you 5% on top of your deposit like they have been offering previously?

Many thanks
CluelessFTB!

kingstreet

I think you are confusing NewBuy and Help To Buy.

NewBuy allows no other incentives, but HTB does, subject to lender acceptance.

If in doubt, check with local HCA HomeBuy Agent.

okborednow

I spoke to a sales advisor at a Bellway home the other day and he told me they are allowed to offer incentives but that these incentives at present aren't allowed to exceed 5% of the total purchase price. Obviously i don't know if this is accurate and it may change in the future. He said he thought that it was because the scheme was new lenders were being more cautious but this restriction may be lifted further in the future. Hope this helps.

kingstreet

okborednow wrote: »

I spoke to a sales advisor at a Bellway home the other day and he told me they are allowed to offer incentives but that these incentives at present aren't allowed to exceed 5% of the total purchase price. Obviously i don't know if this is accurate and it may change in the future. He said he thought that it was because the scheme was new lenders were being more cautious but this restriction may be lifted further in the future. Hope this helps.

Those are the usual CML rules for mortgage lenders. Anything which goes over 5% is deducted from the newbuild property value.

CluelessFTB_2

Thank you both that is good to know!