For years the UK has been experiencing a housing shortage. The Government has realised the problems that this is causing and has promised money to build an extra 1 million homes over the next five years.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
If you are a doctor or dentist and you are looking to purchase your first home, move up the property ladder, or, start or expand your buy to let property portfolio, purchasing a new build property could be an option worth considering.
Benefits of purchasing a new build
Covered by guarantees
New build properties have a 10-year NHBC warranty. NHBC stands for National House Building Council. They cover around 80% of all new build properties, which equates to around 1.6 million properties.
The NHBC warranty covers structural defects. Most property developers also provide their own two-year warranty as well.
All the ‘mod-cons’
When you purchase a new build property, you don’t have the worry of replacing the heating system or re-wiring the electrics. New build properties are built with energy efficiency in mind, so they will have the top-rated efficiency boiler, central heating systems and insulation.
Plus, as the property has just been built it means you shouldn’t have to worry about making repairs to the property, within the first couple of years at least.
Built for you
When you buy an older property, you may want to add your own touches to the property. Such as, shifting around the layout so it flows better, or redecorating. This can be expensive and time consuming. With a new build property, you can choose a development that suits your needs or way of living.
In addition to this, if you decide to purchase ‘off-plan’ you may be able to choose your own fixtures and fittings, so you can end up with a property that is designed for you.
Ease of purchase
The most stressful element of purchasing a property is the dreaded thought of the ‘chain’ collapsing. Figures show that one in three house sales across England and Wales, fall through before completion.
The biggest benefit of purchasing a new build property is that there is no upward chain, so you won’t have the worry of the sale falling through due to ‘gazumping’.
Incentives to buy
The Government has made available two schemes for those who are interested in purchasing a new build property. The first one is the Help to Buy Equity Loan scheme.
The Help to Buy Equity Loan scheme, is where the Government lends you up to 20% of the cost of the property, so you will only need a 5% deposit and a 75% mortgage. Plus, you won’t be charged fees on the 20% loan for the first five years of you owning the property.
The second scheme is the Starter Home scheme. This is a government scheme that aims to provide 200,000 affordable new build homes for first time buyers by 2020. The properties are sold with a 20% discount on the market price. Meaning you have to find an 80% mortgage to cover the rest.
Do you need a low rate mortgage?
Dental & Medical Financial Services have been helping doctors and dentists with mortgages for over 25 years. Call Chris to discuss your options.
Tel: 01403 780 770