WITH the government’s Help to Buy scheme ending earlier this year, first-time buyers will pleased to know there’s still help available.
Getting on the property ladder can be pretty difficult, particularly with rising rents making it tougher to save for a deposit.
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First-time buyers with a 15% deposit face paying nearly £200 per month more for a mortgage than they did a year ago, according to Rightmove.
And across Britain, the average asking price for a first-time buyer type property is now at a record high of £224,963.
For the past ten years, the government’s Help to Buy scheme allowed aspiring homeowners to put down a deposit of just 5%.
It ended on March 31 though, having closed to new applicants even earlier.
But there’s still hope for first-time buyers struggling to save a deposit or afford a mortgage and who feel they missed out.
We’ve done some digging and found seven housebuilders with their own schemes designed to get first-time buyers on the ladder.
All schemes have their pros and cons, so make sure to do your research before going for any of them.
It’s also worth remembering that some schemes are available across almost all developers.
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So if the development where you want to buy isn’t in this list, it’s still worth checking with them directly.
1. Fairview – Save to Buy
Property developer Fairview has launched Save to Buy to help those who otherwise could not afford to buy.
The scheme allows first-time buyers to reserve a plot and move in to the new home with just a 1% deposit.
Over the next two years, you pay a fixed monthly amount to Fairview and it’s added to your deposit.
It means you have time to save enough deposit to secure a mortgage without having to pay rent at the same time.
At the end of the two years, or sooner if you can afford to, you apply for a normal mortgage with the deposit you’ve built up.
You can then buy your home in full from the developer and start to pay down your mortgage.
Currently, Fairview has eligible properties available at Epping Gate in Essex and NewHayes in West London.
All the new-build properties in the scheme range from £325,000 to £500,000 meaning the buyer needs to show they have between £3,250 and £5,000 saved already.
The scheme runs until the end of the year.
For more information as well as full benefits and limitations on this scheme see our story.
2. Bellway – Your home, your way
Bellway is offering first-time buyers up to £20,000 towards a new home.
It’s not just first-time buyers who can benefit. All buyers who reserve a Bellway new-build house between now and June 30 can apply for the cash.
It is part of the developer’s new scheme “Your Home, Your Way” and it’s available in various formats.
Buyers can put the money towards a mortgage subsidy, a deposit contribution, or spend it on upgrading their new home by installing premium flooring, tiling and lighting.
It’s also possible to apply for the money and split it between the three.
Buyers can take advantage of a contribution towards mortgage payments, if they want to keep their monthly outgoings lower.
If they want to move without having to spend any longer saving they can have a lump sum boost to their deposit.
The offer is available on 200 selected developments across England, Scotland and Wales.
Some of the eligible areas include Surrey, Chichester, Teesside, Wrexham and Edinburgh.
It’s important to bear in mind that each home included in the offer will have a specific value attached to it.
The amount you could get ranges from £5,000 up to £20,000 – so you may not get the full amount.
It’s definitely a good idea to check the amount available on the specific house you’re looking at before you reserve it.
There are some things to bear in mind as well depending on how you get the cash.
If you choose a mortgage subsidy or deposit contribution the developer transfers their bit of the cash to the lender at the same time you make your mortgage payment.
If you opt for the deposit contribution, the developer transfers the cash as a lump sum to your mortgage lender when you complete your house purchase.
If you opt for a mortgage subsidy, you’ll be referred to an independent financial adviser to ensure you get the right mortgage for you.
If you choose to spend the money on higher specs for the house, Bellway can make the ultimate decision on what can be done depending on the build stage.
There is no maximum house price available for this scheme.
For more details and pros and cons have a look at our full story.
3. Miller Homes – First Timer Package
Miller Homes offers a First Timer Package for new buyers only.
You can choose between Miller paying your 5% deposit or giving you £15,000 cashback when you move into your new home.
It’s another option for would-be homeowners struggling to save a deposit or those who need some extra cash after they buy.
The cashback can be used for anything, including furnishing your new home, helping to cover the mortgage or to take the edge off household bills.
The developer doesn’t offer the scheme on all plots and properties and you’ll have to secure a mortgage from a lender that’s happy with the terms.
If you choose the deposit option, you’ll still need to pay the standard reservation charge on your plot.
The developer will then knock 5% off the amount you pay for the property.
The value of the Deposit Paid payment will be deducted from the total sale price on legal completion
Plus, the payment will be deducted from the amount to be paid by you at completion – you won’t get a sum in your bank.
The maximum house price the scheme can be applied to is £XXX.
For full information and terms head over to the website.
4. Taylor Wimpey – Deposit Unlock & Top-Up
Housebuilder Taylor Wimpey has several schemes designed to get first-time buyers on the property ladder too.
Deposit Unlock is available to help first-time buyers and existing homeowners buy a new-build home with a 5% deposit and a 95% mortgage.
It’s available up to an asking price of £750,000.
The developer also offers a Mortgage Contribution Scheme which could see it top up your mortgage by as much as £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.
It’s available at selected developments and on some homes only.
Taylor Wimpey also offers Deposit Top-up where it will add up to another 5% towards a new home as well as a 10% deposit from you – or 15% in total.
As an example, if you wanted to buy a £200,000 new home, you would put down £20,000 (10%) and it would boost your deposit by up to £10,000 (5%), giving you a total potential deposit of £30,000 (15%).
You could then only need to secure an 85% mortgage.
As always, make sure to do your research and thoroughly look through the terms and conditions before you commit.
5. Barratt Homes – Deposit Unlock & more
Barratt Homes is offering a similar deal as Taylor Wimpey through its Deposit Unlock scheme.
The scheme was originally launched in November 2021 and doesn’t have an end date so far.
It allows budding buyers to buy with a 5% deposit and gives them a 95% mortgage at competitive interest rates.
The scheme is exclusively available on selected new-build homes.
You can apply online and you’ll be put in touch with a specialist mortgage adviser who will help you set up your loan.
Those interested can have a look at the homes available through the scheme in England, Wales and Scotland by looking on the website.
Barratt does offer several other schemes which might suit house hunters’ needs more.
These include its Key Worker Contribution Scheme and its Armed Forces Contribution scheme.
Plus, the company also has separate offers available for new buyers and existing homeowners.
If you reserve a home and move in by September 15, the housebuilder also offers a mortgage contribution, deposit contribution or help towards your moving and running costs.
On the date of completion, for every £10,000 of the purchase price of the property, Barratt will pay you £300.
For example, if you reserve a property with a purchase price of £325,000, you’ll get £9,750.
If you choose a contribution towards mortgage payments, it would keep your monthly outgoings lower.
Or you can choose a lump sum boost to your deposit if you want to cut how much you need to save.
Make sure to check out the housebuilder’s website for more information on each scheme and speak to a member of the team if you’re unsure which is best for you.
6. Vistry – Deposit Assist
Vistry has recently launched a new schemed designed for first-time buyers called Deposit Assist.
A friend or family member has to contribute a minimum of 5% of the new build home asking price towards your deposit.
Vistry will give them a cash gift of £2,000 after you complete the sale and it’ll give you £5,000 towards your moving costs.
The scheme is available across each of Vistry’s housebuilders including Bovis Homes, Linden Homes and Countryside.
You can head to each of the individual websites to find out more about the offer and where available houses are near you.
7. Persimmon – Deposit Boost
Persimmon is another housebuilder offering various deals to first-time buyers to give them a leg up.
Its Deposit Boost scheme operates in the same way as Taylor Wimpey’s Deposit Top-Up.
It aims to help house hunters borrow less in order to get a competitive mortgage rate on their home.
If you save a 10% deposit for a Persimmon home, the housebuilder will boost it by an extra 5%, giving you a total deposit of 15%.
The bigger the deposit you can put down the less you’ll have to borrow.
How much you borrow and your loan-to-value also affect mortgage rates.
If you have 40% equity or deposit you can buy a £200,000 home with £80,000 in cash and a £120,000 mortgage.
The best two-year fixed rate is currently from First Direct at 4.39% with a £490 fee and monthly repayments of £660.
If you have a 10% deposit and Persimmon adds another 5%, you will need to borrow £170,000.
The best two-year fix is currently 4.64% from Nationwide which comes with a £999 fee and monthly repayments of £958.
Persimmon also offers Deposit Unlock and specific deals for key workers and members of the armed forces.
More help for buyers
It’s important you always check the full terms and conditions of each scheme as they may differ from others.
Have a look at our round-up of more schemes designed to get first-time buyers on the property ladder.
The Sun Money’s My First Home series highlights how savers transitioned into homeowners and their handy tips.
Plus, several banks and building societies will not hike mortgage rates, despite the Bank of England’s latest interest rate rise.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
