Dave Hesson, Regional Managing Director at Morris Homes, explains the new government Help to Buy scheme and how it will help househunters across the UK.
The government recently announced the launch of ‘Help to Buy’ in the recent budget – its new initiative for homebuyers.
It has been designed to support those who have a five per cent deposit buy their first home or move up the property ladder, improve the availability of new homes and increase the supply of low-deposit mortgages.
There are two ways to benefit from Help to Buy: Equity Loan and Mortgage Guarantee.
Equity Loan is already accessible across the UK from housebuilders like Morris and it is available for the next three years. Mortgage Guarantee won’t be available until January 2014.
New schemes like these can often be very confusing to buyers so we wanted to cut through the jargon and make it easier to understand.
This effectively replaces the FirstBuy scheme that was previously available. It is open to both first-time buyers and existing homeowners as long as they buy a new build property up to the value of £600,000.
It means buyers only need to have saved a five per cent deposit to benefit from a 75 per cent mortgage which significantly reduces their monthly repayments.
This is because the government will supply the additional 20 per cent through an equity loan. The loan is interest free for the first five years and can be repaid at any time or on the point of sale.
The good news is that this means that on a Morris home worth £124,750 the figures stack up as follows*:
• Five per cent deposit required: £6,238
• Government loan: £24,950
• Mortgage amount: £93,562
• Monthly repayments could be: £473* (see below)
The Mortgage Guarantee option is available from January 2014 and includes both new build and existing homes. Again, only a five per cent deposit is needed but rather than getting a loan, the government will instead guarantee a portion of the mortgage.
This security will encourage lenders to offer more low-deposit mortgages so that it’s possible to buy immediately instead of having to wait and save.
The Help to Buy scheme means that buying a new home is now affordable for millions of people across the UK. Housebuilders and the government will work together to ensure it helps as many people as possible make buying that dream home a reality.
*Monthly repayments: Monthly payment based on a 25 year repayment mortgage with Halifax borrowing £93,562.00 on a fixed rate of 3.59% until 30/09/2015 with 28 payments of £472.92 followed by 272 monthly payments of £491.72 at a standard variable rate currently 3.99% to give an APR of 4.1%. The valuation fee is £315.00 payable up front. There is no product arrangement fee to the lender. This is based on the 80/20 Help to Buy shared equity scheme and requires a 5% deposit of £6237.50 from the buyer. Please note these deals could change at any time.
In case you didn’t know, Zoopla.co.uk are the official sponsors of Premier League Club West Bromwich Albion who, this weekend, are playing Manchester United at home at The Hawthorns.
Normally this would be nothing other than another Premier League fixture, however this match is set to be epic. It’s Sir Alex Ferguson’s 1,500th game as manager of Manchester United, but also this will be his last ever game as manager -26 years!
Consequently tickets sold out in a flash. West Brom are preparing a special edition 144-page programme which has already sold over 5,000 copies online and Sir Alex Ferguson will be given the guard of honor by the Baggies.
However, not ones to let you down, we have the last remaining two home stand tickets to this game. Yes, you read correctly!
Here’s how you can give yourself the best possible chance to win them.
To enter the draw, all you have to do is follow @Zoopla on twitter and re-tweet this tweet on Twitter – link to tweet here or click on tweet image below
As we anticipate some demand for this prize, please make sure you are aware of the T’s & C’s stated below.
T’s and C’s
1. To be eligible for the draw you must follow @Zoopla on twitter and retweet the competition tweet.
2. The winner will be chosen at random and contacted via twitter just after 5pm May 17th 2013 and must reply to @Zoopla within an hour or another winner will be chosen.
3. The winner may not sell the tickets and will be required to show proof of ID when picking up the tickets.
4. The winner must be over 18.
5. The winner must be signed up to the West Bromwich Albion website.
Rumours are circulating that British singer-songwriter Rod Stewart has added to his property portfolio and bought Durrington House in Essex for £4.65m.
A quick look on Zoopla and we see that Durrington House was previously listed for £3,150,000 back in May 2012. Naturally, we cannot help wondering what was behind the £1.5m price leap from one year ago, but unlikely we will ever know.
Price aside, if this is indeed Rod’s home he’ll be neighbours with another musical legend (depending on your musical taste), although maybe not for long, as he is trying to sell it.
Stephen Harris, the 56-year-old founder, main songwriter and lyricist for the world’s most famous heavy metal band, Iron Maiden has lived in Sheering Hall, Essex since 1994 and is currently on the market for £5.85m – you can see it here. It comes complete with its own pub and some rather interesting interior decor!
Anyhow, Rod’s new home is said to be one of the finest houses in the area, occupying a private and secluded position spanning 20 acres of land. The house is adorned with period features and surrounded by immaculate gardens and is the first time the house has come to the market in over 50 years, having been within the same family for two generations.
As you can see from the pictures, the property is set in extensive private and secluded grounds, with 10 bedrooms, 4 receptions and five bedrooms and a mixture of formal reception and family rooms.
Checkout the pictures below:
More details on the property here
Did you know that the contents of the average garden are now worth nearly £2,000 with home owners splashing out on £894 alone in the past 12 months on the likes of outdoor furniture and decorations.
Sounds like a lot doesn’t it? But if you have your eye on something it’s best to set a goal. The Money Advice Service guide How to set a savings goal could help.
One in ten homeowners recently admitted in a report that they have spent money on their garden as they can’t afford to move home, while one in three say that spending a lot of time outside (weather permitting) is the main reason for upgrading their outdoor spaces.
Despite this hefty investment, 12.5 million (or more than two in five) of homeowners are leaving their gardens unprotected, by not checking whether their items are covered under current policies, or by having no insurance at all.
It’s all the more worrying in light of the fact that 1.4 million thefts from gardens and outdoor spaces were recorded last year, marking a 17% increase over the last five years.
Follow these handy tips from the Money Advice Service for keeping your gardens safe:
1. Check your contents insurance documents to see what you are and are not covered for. If you have no contents insurance, it might be an idea to get some.
2. When possible, keep expensive tools, lawnmowers and bicycles out of sight and locked away.
3. Don’t forget about tools and ladders that could be used to break into your home too.
4. Make sure garden sheds, gates, garages and outbuildings remain bolted with a secure lock.
5. Plug gaps in fences or bushes to stop opportunistic thieves slipping through.
6. Use landscaping to your advantage. Try to plant some thorny plants and shrubs with prickly leaves as a natural barrier to deter the thieves.
7. Shrubs and overgrown trees can prove to be an asset to burglars. Make sure you prune overgrown and large trees.
8. Mark valuable items, such as patio furniture and ornaments, with your postcode, and keep photos of your garden valuables for your claim in case anything is stolen or vandalised
9. Keeping your driveways or front paths updated with pebbles or gravel can help you to hear someone approaching your property.
10. Look into joining your local Neighbourhood Watch scheme in order to help protect yours and your neighbours’ properties