FTB New Build Process?

SAMFOB

We are currently saving as much as possible for a house deposit, and could do with some guidance.

I realise many people aren't fans of new builds, and that's fine. But we are very keen on them, and are hoping to get one in the near(ish) future.

We know we need to save more, and hopefully significantly increase our income, but it's the process we're most concerned with.

TL;DR
Do we get a mortgage in principle first, then reserve on a new build, or vice versa? Basically, do we approach house builders first, or banks?
At what point should we speak to a broker?
Will a mortgage provider ever consider us, even if we save a high % deposit, if our income is still low?
If we use the Help to Buy Equity Loan, at what point should we organise that?

Any help or advice you can give on the new build buying process, or first time buyer tips would be very much appreciated.

kingstreet

Look at sites

Speak to brokers to confirm HTB and mortgage affordability

Decide on site and property type

Get agreement in principle

Agree price, incentives and make reservation

Apply to HTB Agent for Authority To Proceed

ATP issued in four working days or less

Follow usual mortgage process with broker.

SAMFOB

kingstreet wrote: »

Look at sites

Speak to brokers to confirm HTB and mortgage affordability

Decide on site and property type

Get agreement in principle

Agree price, incentives and make reservation

Apply to HTB Agent for Authority To Proceed

ATP issued in four working days or less

Follow usual mortgage process with broker.

Thank you, for your quick and succinct response. This is a perfect outline for us to work from. Thank you!

Lord_Baltimore

And get a solicitor?

SAMFOB

Good point, at what stage should we engage with a solicitor, and do you have any recommendations about how to find one?

kingstreet

Yes, sorry.

You'll be appointing a solicitor so you can reserve.

magicpork

In my case, the developer asked me to appoint (or use theirs) a solicitor immeadiately after the HTB reservation was completed and my solicitors applied ATP from my local HTB agency.

You'll pay 500 pounds (fully refundable) to reserve the property under HTB schema, pay 5% on exchange, and the remaining of deposit on completion

DCFC79

SAMFOB wrote: »

Good point, at what stage should we engage with a solicitor, and do you have any recommendations about how to find one?

Ask friends and neighbours you get on with for recommendations.

kingstreet

magicpork wrote: »

In my case, the developer asked me to appoint (or use theirs) a solicitor immeadiately after the HTB reservation was completed and my solicitors applied ATP from my local HTB agency.

Solicitor details on reservation and HTB property information form have to be correct/complete so you need to decide who you are using before you can reserve/

hazyjo

Advisable to use an independent solicitor, not the one they will probably try to bribe/force you use, prob in order to get reductions or freebies.


They are likely to have the best interests of the developer at heart, not yours.


Jx

gregsayer

you don't ( and shouldn't) need to use their solicitor, but using their mortgage broker may make things easier... they will know the developer, and hence have experience with the HTB products from lenders (not all banks support the equity loan) and the broker will get their fee from the lender regardless.


with new builds now, they wont budge on price, but will throw in extras, I got full carpeting / laminate, the rear garden turfed, the patio expanded and the bathroom fully tiled.


developers like FTB's as your "proceedable" and even have chance of jumping the queue.
get to a broker, armed with proof of your deposit, evidence of your income and outstanding debts and get an AIP on a HTB deposit, then walk into the developer with your £500 deposit


have a read of https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-160216.pdf


and make sure you meet the criteria.


remember with the HTB Loan, you cannot own any other residential property, and after 5 years have to pay an annual administration fee.
If you sell your house you will have to repay the same % as the loan, so if you borrowed 20% of a £100k house, then sold it for £110k, even though you borrowed £20k you have to repay £22k (or less if the house sold for less)


you also have to remember any future changes to the mortgage or major works to the house has to be approved by HTB, who also have a final say in the sale value.


having just gone through it, then helped my brother through the process, its not a bad process, and a good broker and solicitor should make it easy for you.


feel free to PM me any questions


Greg