Looking at the Help to Buy scheme but confused about what counts as a New Build? You’re not alone. In this short guide, we hope to clean up some of the confusion around Help to Buy and New Build properties.
The Government’s Help to Buy will help those with a smaller deposit get on the property ladder using a low-interest loan to boost the deposit. One of the rules of the Help to Buy scheme is that it must be used to purchase a New Build. But what exactly counts as a New Build?
There is currently only one lender offering the Help to Buy mortgage, but it is still worth considering if you have a smaller deposit. It could boost your deposit amount, so you would only need a 5% deposit and the government would provide a loan of 20% of the property value. This would allow you to secure a 75% LTV mortgage.
If the property has been built in the last few years but has yet to be sold, this would count as a New Build. So you don’t have to look for the most recent developments to qualify. The property could also be considered if the developer has rented but not yet sold the property.
Yes, provided the property has not been sold to anyone yet, it would still count as a New Build for the Help to Buy scheme. If the property has been left empty, or the property has been rented but not sold, then it would be considered a New Build.
If you’re confused about the Help to Buy scheme or want guidance on the specifics of New Build properties, get in touch with Niche Mortgage Info today.