Posted 23 December 2022 byÂ
Keith OsborneThe Yorkshire East division of Barratt Developments – the former WhatHouse? Housebuilder of the Year which sells homes under its Barratt Homes and David Wilson Homes brands – is predicting that Boxing Day will be the year’s busiest time for the country’s house-hunters, and that many of them will be seeking expert mortgage advice in order to secure the best possible deal.
The housebuilder’s research has revealed that some 1.1million people in the UK are seeking mortgage advice online, increasing by over two-thirds (70%) since August 2022. Amid the rise in the cost of living, prospective home buyers are concerned about how the financial climate will impact their plans to buy a new home. On Boxing Day last year, the company saw a 146% increase in searches for its new homes for sale.
Adrian MacDiarmid, head of mortgage lender relations at Barratt Developments PLC, is offering some financial guidance to those who are looking to purchase a new home right now.
Beat your bills
The cost of living has significantly impacted many households, including bills and utilities. Choosing an A- or B-rated energy-efficient property will cut your running costs and therefore increase what you might be able to afford to pay on your mortgage. Some lenders may even lend you more as a result. MacDiarmid commented: “A recent report by the Home Builders’ Federation (HBF) has revealed owners of new builds can save up to £2,600 a year on their energy costs. This is significant for home buyers, especially during the energy crisis, as it will allow them to save up to thousands of pounds each year as a result of reduced running costs.”
Make the most of buying schemes
The government-backed Help to Buy scheme may have ended, but there are still a range of schemes available that are designed to help people to get on to the property ladder. Deposit Unlock enables first time buyers and existing homeowners to purchase a new build property with a 5% deposit, which can give them access to better mortgage rates.
Part Exchange is another popular scheme offered by housebuilders to help existing homeowners to secure their dream home. The scheme sees the housebuilder purchase the consumer’s existing property at fair market value, so they can buy their new home faster and easier by removing a chain and estate agent fees. Taking it one step further, Barratt Homes recently launched its Part Exchange Guarantee scheme. If Barratt Homes sells your home for more than the offer that it’s made to you in the Part Exchange scheme, it’ll give you the difference.
“There are lots of lenders still looking to support people buying a home and there are many options for different circumstances. Getting advice early is good because you will be able to see what options are available to you at the time,” said MacDiarmid. “It’s also worth checking the incentives that are available, as Barratt Homes and David Wilson Homes both have fantastic offers that can see buyers saving thousands. For example, we are currently offering the Mortgage Contribution Scheme where we will contribute up to £15,000 towards mortgages for customers in Yorkshire East.”
Hesslewood Park
Put together a budget planner
The first action to take is to sit down and work out your income and outgoings. To identify areas where you could be saving money, it’s important to understand what you’re spending your money on, without compromising your lifestyle.
MacDiarmid said: “A budget planner takes your total monthly income and expenditures and is a great practical tool to help identify where you can make savings, which gives you an idea of what you can afford each month.”
Speak to a mortgage advisor
Purchasing a new home can be stressful. By speaking to a mortgage advisor, and sharing your budget planner, you’ll have a clearer idea of your affordability. You can discuss how much you will need to secure a property, including money to cover a deposit, legal fees, moving costs and your ongoing mortgage repayments.
MacDiarmid commented: “Mortgage advisors will be able to advise on how much you can borrow and the amount it will cost each month. Speaking to an advisor early has its benefits, as you will know what you can afford when searching for your home.
“We work with a range of trusted mortgage advisers who can match your circumstances with a range of different lenders from across the market, in order to find the mortgage that is best suited to you.
“It’s important to ignore the noise and take a personal approach. We recognise that owning a home is a personal goal for many people, and one that is absolutely still possible. It all comes down to getting your finances organised, speaking to a mortgage advisor and making the most of schemes available. We recommend any interested prospective buyers speak to our friendly sales team at their local development.”
Poppy Fields
Barratt Homes and David Wilson Homes have brand new homes for sale at a number of sites in the East Riding of Yorkshire:
Poppy Fields, Cottingham, with three- and four-bedroom new homes from £246,000.
Harland Park, also in Cottingham, where four-bedroom homes start at £355,000
Mortimer Park in Driffield, where two- and three-bedroom homes start from £86,000 for a 50% share, thanks to the Home Reach part buy-part rent scheme.
Fleet Green in Hessle, which offers three- and four-bedroom homes priced from £242,000.
Neighbouring Hesslewood Park has three- and four-bedroom homesfor sale, with Home Reach available on selected plots from £121,500.
Harrier Chase, where three- and four-bedroom houses start from £274,000.
Queens Court in Beverley, with three- and four-bedroom homes with starting prices from £214,000.
Minster View, also in Beverley, has Home Reach plots amongst its three- and four-bedroom houses, starting at £135,000.
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