Why 'Help to Buy' a new home in Towcester has the edge
With equity loans and mortgage guarantees both available under the banner of Help to Buy, Redrow is offering to simplify the buying process for those confused by the different versions of the scheme.
While more than a third of those who reserved a new Redrow home since July 1 successfully used Help to Buy, research by a money saving website suggests that 71% of people find the Government’s Help to Buy initiative ‘confusing’.
To ensure buyers understand the options available Redrow is inviting purchasers to visit Tove Grange in Towcester.
Tonia Tyler, head of sales for Redrow Homes (South Midlands), says: “Help to Buy is proving popular with customers across the country, including those in Towcester but there is still some confusion about the different types of help available under the scheme and what they mean for buyers.
“The first phase, already tried and tested, is available on new-builds only and offers purchasers an equity loan for up to 20% of the purchase price. They then only need a deposit of 5% and a 75% mortgage to proceed.
“The Government-backed equity loan is interest free for the first five years. Reducing the initial outlay for their new home means customers need a smaller deposit and can look forward to lower than expected monthly mortgage repayments.”
The second phase of Help to Buy, which launched in October, works differently. It is available on all homes, new and second hand, and offers a mortgage guarantee on mortgages up to 95% loan to value.
“The Government will guarantee up to 15% of the loan at a cost to the lender, allowing the borrower to access cheaper mortgage deals and purchase with a 5% deposit. However, only a small number of lenders have currently signed up to this scheme and, of those that have, the interest rates are generally higher than those currently being offered on new-build homes under the first phase of the initiative,” Tonia explains.
Both Help to Buy options are available on homes up to £600,000.
“For those purchasing a new home, it will be up to the customer to decide which is the better deal for them – they cannot use both – and then their mortgage adviser and lender will go through the normal checks. If this all sounds too complicated, our friendly sales advisers and mortgage specialists will be available to make it simple,” Tonia adds.
Tove Grange features a choice of substantial four and five-bedroom homes from Redrow’s sought-after Heritage Collection with prices from £334,950 to £474,950.
The four-bedroom Cambridge, which is almost ready to move into, is a prime example of the savings that can be made when using a Help to Buy equity loan. Usually costing £334,950, it can be purchased for an initial outlay of £267,960.
At the heart of the Cambridge is an open plan kitchen, dining area and family room. The light and airy nature of this inviting, sociable space is emphasised by French doors that offer lots of natural light and easy access to the rear garden.
For quieter moments or more formal entertaining, there’s a separate lounge to the front of the property.
A utility and cloakroom complete the ground floor.
Upstairs, the master bedroom benefits from an en-suite, with the remaining three bedrooms sharing the family bathroom.
The new homes at Tove Grange are close to the amenities of Towcester, with Northampton and Milton Keynes also easily accessible.
To find out more about the homes and the help available, visit the sales office and showhome open daily from 10am to 5.30pm.
Redrow Homes is one of the UK’s leading house builders, operating across England and Wales, with a strong emphasis on high quality family housing in prime locations. Its Heritage Collection of family homes combines traditional looking, ‘Arts & Crafts’ influenced exteriors with bright, modern, high specification interiors. Established almost 40 years, the company has won numerous awards over the years. Redrow received a 5* Award in the Home Builder Federation (HBF) annual customer satisfaction survey in 2011, 2012 and 2013; collected the Silver award in the Large Housebuilder category of the 2012 What House? awards; and its ‘Share a little bit of joy’ campaign was named best marketing initiative at the 2012 Housebuilder Awards. Web: www.redrow.co.uk.