As the Government gives the green light to construct thousands of new starter homes, many 23-40-year-olds will want to know how to register interest and how the scheme will work.
As an established mortgage broker, Springtide Capital has provided an overview of the new scheme and how to pre-register interest.
What is the new construction plan?
The housing minister, Gavin Barwell, confirmed on 3rd January 2017 that this year will see the first starter homes being built on brownfield sites across the country.
Created to address severe housing shortages in the UK, the new scheme will be for those aged 23-40 and will provide affordable housing at a minimum of 20% less than market value.
The Government has said: “The £1.2 billion Starter Home Land Fund was established in April 2016 to support the acquisition, remediation and de-risking of further suitable land for starter home developments. Some 71 sites across the country have already received investments, including land at: Plymouth, Bury, Basildon, Stockport, Bridgwater, Cinderford, Minehead, Bristol, Trafford, Isle of Wight, South Ribble and Swindon.”
Aimed at helping first-time buyers to get on the housing ladder, this scheme has attracted strong interest from both builders and local councils. The Starter Homes Land Fund has been created to prepare suitable land for building developments, helping to accelerate construction by 2020.
How to register your interest
Based on the new houses being built in 2018, you’ll have a least one year to save and plan your finances.
However, the new homes will be in demand, so it’s advisable to pre-register your interest with New-Homes.co.uk (set-up via the Home Builders Federation) in addition to speaking to several local estate agents to ensure you’re made aware when they become available.
Working with professionals
If you’re considering purchasing your first home, it’s advisable to enlist the help of an experienced mortgage broker.
They will help you to understand whether you can afford the bills, the mortgage required to purchase a property, explain the process and help you to plan financially.
When the time comes, the mortgage broker will match your circumstances to a suitable mortgage lender, complete affordability checks, explain what you’re agreeing to and complete the necessary paperwork with you.
You’ll also need a solicitor, which your estate agent or broker can recommend. Choose carefully, as a good solicitor and mortgage broker will be the key to a stress-free experience.
Budgeting for the move
- You’ll need to calculate the bills you can expect to pay at the property including food, council tax, utilities and buildings insurance etc.
- Creating a spreadsheet with all expected bills, current commitments, savings and projected earnings will make it easier for both you and your mortgage broker to understand affordability.
- You’ll also need to save a deposit for your new home (usually 5%) and allow for stamp duty tax for the purchase of the new property.
- Finally, consider the cost of the move itself, including solicitor’s fees, mortgage fees (including surveys and valuations carried out) and removal costs. Your mortgage broker will discuss what you need to save for and the fees that can be added to your mortgage.
For more information or to book an appointment with a mortgage broker call 020 3040 4400.