Help to Buy makes homeownership a reality
Posted 5 September 2016 by Helen Christie
Many reports reveal that the average age of first-time buyers is increasing over time. With nearly 80% of all 35 to 44 year olds owning their own property in 1992, this figure fell to 60% last year and is expected to continue to decrease.
This downwards trend is being driven by higher deposit requirements, only to be compounded by the increase in private rent which in turn makes it harder to save. It was only thanks to Help to Buy that 43-year old Jamie Tanner was able to break the ‘rental trap’ and get onto the property ladder at Barratt Homes’ Cissbury Chase development in the seaside town of Worthing.
Having previously rented in nearby Brighton where the property market has soared disproportionally in comparison with the local area thanks to an influx of London buyers, construction manager Jamie knew he wasn’t going to be able to afford to buy in the trendy town. Even with the savings he had, looking further afield, a one-bedroom flat was still proving a stretch too far and so for years he continued to rent his two-bedroom apartment costing him around £1200 a month in rent.
It wasn’t until he found out about Help to Buy at Cissbury Chase in nearby Worthing that he realised that he could actually afford to buy a brand new home – and not just a flat but a three-bedroom house. Thanks to the government-backed equity loan scheme which only requires a 5% deposit and provides access to much more affordable mortgage rates, Jamie now also pays more than £200 less a month on his mortgage than he was in rent.
Jamie says: “Although I was really keen to own my own property, I had just resigned myself to the fact that I would have to keep renting as property prices were soaring – and so were the size of deposits needed to keep up. As I was working at the site, I found out about the Help to Buy scheme and how it could help me buy a three-bedroom house with much less upfront cost. I didn’t waste any time applying for the scheme and once I qualified, I put down my 5% deposit straight away and reserved one of the houses.
“I now pay less on my mortgage every month and get a much bigger property too - it is unbelievable. I love my new home and the fact that it has already increased in value by around £25,000 since I bought it is proof that I have made a good decision.”
Buying at the Barratt Homes Cissbury Chase development in Worthing, Jamie is getting used to not living in trendy Brighton but enjoys only being 20 minutes away for the odd visit.
Jamie adds: “It’s lovely to be so close to Brighton still but I definitely don’t miss living there. Worthing is a really exciting new area and to be honest feels a lot like Brighton did 15 years ago. There is a lot of investment going on here at the moment with lots of new businesses coming here as well as cafes and restaurants appearing and so I’m really excited to see how it will all turn out. I certainly feel very confident that my house purchase at Cissbury Chase has been a good move and thanks to Help to Buy, I now have a foot firmly on the property ladder.”
Using Help to Buy, Jamie has been able to buy a bigger home than he would otherwise have been able to. Available with properties up to the value of £600,000, the government-backed equity loan scheme meant that they were able to secure a brand new home with just a 5% deposit. Then receiving up to a 20% equity loan from the government, he then only needed to secure a 75% mortgage. So, as well as a lower deposit amount required, Jamie now has much more affordable monthly repayments than he might have expected to find with a typical 95% mortgage.
Lynnette St-Quintin, sales director for Barratt Southern Counties comments: “Help to Buy has been such a useful buying tool for such a wide range of homebuyers – and especially first time buyers. It’s great to hear that the scheme has helped Jamie buy a much bigger property at Cissbury Chase than he would have otherwise have been able to and, like many people find, he now actually pays less than he was previously in rent.”
Cissbury Chase by Barratt Homes has proved to be a very popular development in a convenient town centre location in Worthing, West Sussex, offering an attractive range of two, three and four bedroom homes – including apartments. Ideally located just a five minute walk from Durrington-on-Sea train station, the homes are well positioned for the seaside, as well as a range of facilities nearby.
Prices at Cissbury Chase currently start from £218,995 for a two-bedroom apartment where with Help to Buy a deposit of only £10,950 is required. Help to Buy has helped over 40% of buyers at Cissbury Chase purchase their home.
Find out more about Cissbury Chase from Barratt Homes