SAVING to buy a new pad is not easy, but some builders will help by giving you free money worth tens of thousands of pounds towards your home.
Developers trying to sell properties sometimes offer tempting cash incentives as part of the purchase.
The deals are usually only available newbuild homes with the builders offering promotions to get help get sales going.
Each scheme is different and what you can get varies. In some cases, deals are specifically for first-time buyers whereas others are available to home movers too.
Some of the cash deals offered by builders are not available on all properties for sale and instead linked to specific plots.
It’s a good idea to make sure you are clear on the incentives offered on the specific home before paying any reservation fees, which you may not get back if you change your mind.
Get a mortgage offer in place too and make sure your lender is aware of any cash offered by the builder as part of the deal.
A good independent broker should be able to guide you through the process.
Here is what you could get…
If you have managed to save a 10% deposit for a home, Barratt will top up the amount by a further 5%.
The advantage is that you will qualify for a lower loan to value mortgage of 85% loan to value rather than 90% – this typically gives you more choice on home loans, as well as lower rates.
For example, if you were looking to buy a £160,000 home you would need to have at least a £16,000 deposit (10% deposit). Persimmon could then top up to an additional £8,000 (5% deposit), giving you a total deposit of £24,000.
Bellway offers buyers up to £30,000 towards a new home.
Buyers who reserve a new-build home with the builder can choose from different perks, including cashback and money towards the deposit.
It is part of the developer’s”Your Home, Your Way” scheme.
Buyers can choose from cashback, a deposit contribution or a free 55” Sky Glass TV and an Ultimate TV with Sky Sports package.
The builder says it will give a deposit contribution of up to 5% of the price of the home up to £30,000. Despite it being called a deposit contribution, it can’t be used towards your deposit with the lender as the money is only deducted from the house purchase completion statement.
In reality, it means it is more like a discount off the asking price.
You can also get 5% of the purchase price as cashback up to £30,000. This money could come in useful for furnishing your home or paying legal or moving costs.
Buyers can only choose one of the incentives and the offer is available on selected developments and plots across England, Scotland and Wales.
The offer also can’t be used in conjunction with any other promotions.
The builder offers come across the country including in Merseyside, Mid Lothian and Oxfordshire.
Check the exact amount available on the specific home you’re looking at before you reserve it.
As it’s a percentage of the purchase price, you may not get the full £30,000. For example, if the property is £300,000, you’ll get 5% back working out as £15,000 in cashback.
First-time buyers can get a 5% deposit paid, deposit matched or cashback as part of incentives from Miller Homes.
If you choose the deposit paid, as with Bellway, the payment for the deposit is deducted from the amount to be paid by you at completion – you won’t get a sum in your bank.
Again, in some ways it is more like a 5% reduction off the asking price.
The builder will also match your deposit up to 5%, you will need to show proof of your savings and again the match amount will be deducted from the final completion.
If you choose cashback it could help you furnish your new home, help to cover the mortgage or help to take the edge off household bills.
The contributions offered are plot specific and subject to lender approval.
Homebuilder Persimmon is signed up to the wider Deposit Unlock scheme which helps first-time buyers and existing homeowners buy a new-build home with a 5% deposit and a 95% mortgage.
The scheme has been developed in partnership with specific lenders and is only available on selected new build homes.
It’s open to first-time buyers and existing homeowners on selected homes up to the value of £750,000.
The builder also offers a Deposit Boost where it will top up a 10% deposit by a further 5% to give you a total of 15%.
If a family member helps with your contribution towards your deposit, Persimmon will thank them with a payment of £2,000.
To be eligible for the scheme you must be a first-time buyer, and a parent or family member must gift a minimum of 5% of the purchase price of your new home, with proof that they have done so.
Again, this is available on selected plots and developments only.
Housebuilder Taylor Wimpey has several schemes to help first-time buyers.
You can also use Deposit Unlock, available to help first time buyers and existing homeowners buy a new-build home with a 5% deposit and a 95% mortgage.
It also offers a Mortgage Contribution Scheme which could see it make payments towards mortgage by up to £12,000.
This could reduce your monthly mortgage payments by up to £500 a month over two years.
This deal is available for all buyers whether you’re moving on from your existing home or you’re a first-time buyer.
This offer is available at selected developments and on selected homes.
Taylor Wimpey also offers Deposit Top-up where it will add another 5% towards a new home where you have saved a 10% deposit – making it 15% in total.
This can help you get a mortgage at a lower loan to value which typically means lower rates.
As an example, if you wanted to buy a £200,000 new home, you would need to put down £20,000 (10%) and boost your deposit by up to £10,000 (5%), giving you a total potential deposit of £30,000 (15%). You may then only need to secure an 85% loan to value mortgage.
Read the full terms and conditions for each scheme on the housebuilder’s website and clarify any queries.
Property developer Fairview offers a scheme called Save to Buy which allows buyers to get a property with a deposit of 1%.
Once you’ve saved the required amount, you can apply for a mortgage to buy your home.
With properties ranging from £325,000 to £500,000, a buyer only needs to pull together between £3,250 and £5,000.
The scheme allows first-time buyers to save for the rest of their final deposit while living in their new home.
On average, the builder says it takes a further six to 12 months to save and complete a full mortgage for the property, but it may be available for up to two years if needed.
The advantage of the scheme is that if you’re a first-time buyer, you can save on rent and instead put the money towards the deposit.
So although there is not an exact cash amount, it can save you money depending on hoe much you had been paying in rent.
Fairview is a builder focused on London and surrounding areas, so the scheme is only suitable if you want to buy in these areas. The scheme is only available on selected plots too.
You’ll need to be in full-time employment to qualify for the scheme.
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