Ways to buy your new home
22 December 2023
If you want 2024 to be the year you buy the home of your dreams, there’s more than one way to make it happen.
Whether your goal is to take that first step onto the property ladder or you already own a home but want a helping hand with selling so you’re free to buy new, the different ways to buy a home mean you can choose the best one to suit your needs.
In this article, we highlight the range of buying methods available so you can plan your dream move.
In this section:
- Mortgage Contribution
- Shared Ownership
- Shared Equity
- Part Exchange
- Easy Move
- Promotional Offers
When you buy a property, you usually have to fund from 10% of the property price yourself – known as your deposit. If you don’t have the funds for the remainder, you can apply to borrow this amount from a bank or building society. The loan is called a mortgage, and your lender will then work out your monthly repayment amount – including interest – which you will pay back over an agreed number of years.
There are many different types of mortgages available, from variable and standard variable rate mortgages to tracker and fixed rate mortgages, and if you’re new to the home buying process, then it can be difficult to know which one will be the most suitable one for you.
When you buy new with Places for People however, we will put you in touch with an Independent Financial Advisor (IFA), who specialises in new-build mortgages and will do the hard work for you – including finding you the best mortgage deals.
This is when a house builder rewards you for buying new with a financial boost towards your mortgage. Amounts will vary, but with schemes such as Places for People’s mortgage contribution scheme it’s not unusual to have your mortgage paid for up to a year after completing on your new home.
Since moving costs can soon start to rack up, being able to count on a contribution towards one of your biggest outgoings has obvious appeal for first-time buyers and current homeowners alike. For the latter, it can free up extra cash to kit out your new dream home whereas if you’re buying for the first time, getting help towards paying the mortgage might mean you can adjust your savings goal and move sooner.
A mortgage contribution eases the financial pressure of moving while helping you realise your dream of buying new – win-win!
The Shared Ownership scheme is another achievable way to bring your home buying plans to life in 2024, since the lower deposit and mortgage repayments make it easier for you to get onto the property ladder.
This government-backed scheme works by enabling you to purchase an affordable share (usually between 25% and 75%) of your brand new home and pay a subsidised rent on the remaining share, owned by a housing association or housing development company, like Places for People. Your deposit starts from just 5% of the share you buy (not the full property price) so it’s smaller and easier to save up. Your monthly mortgage payments are also smaller.
It’s a simple and cost-effective way of buying new and you have the option to buy more shares in your home later, as finances allow – a process known as staircasing.
Similar to Shared Ownership, Shared Equity is a Scotland-based scheme offering you the chance to live your new home dream for less.
With Places for People’s Shared Equity scheme, Customers fund between 60% and 80% of the price of the property, made up of a deposit and a mortgage. The equity loan, which is funded by us and the Scottish government, finances the remainder. You’ll own 100% of the property and there’ll be no rent to pay, and the loan only needs to be repaid when you eventually come to sell your home.
Shared Equity is designed to help you keep the deposit and monthly payments on your brand-new home to a minimum and can save you up to £500 a month* compared to buying on the open market.
If you’re an existing homeowner and keen to buy new, Part Exchange is a simple way to buy that will save you from having to sell your home on the open market. You choose the new home you’d like to reserve and the house builder will then make arrangements to buy your current property, which frees you up to buy your new one.
The beauty of Part Exchange is that you won’t have to worry about being caught up in a chain – you can simply stay put until your new home is ready to move into. Better still, you won’t have any of the hassle that comes with selling a home, or estate agency fees! You can focus all your energy on looking forward to this next exciting phase of your life, and creating your dream new pad…
Some house builders also offer to support Customers with selling their current property (although not actually buying it as is the case with Part Exchange), so they can enjoy a stress-free move to their new-build home.
At Places for People, we call this Easy Move. When you buy new with us, we’ll help you to make your dream move more quickly by working with you to sell your existing home. We will agree a valuation and then list your home with multiple agencies to achieve the best possible price. Our dedicated property management agent will negotiate all offers for you, so you can buy your new home hassle- free.
Easy Move is just like selling your home on the open market but with extra benefits and zero costs.
Another way to make buying your brand-new home more achievable is through promotional offers. Depending on who you buy with, that might include anything from getting help with your energy bills after you move in to receiving a deposit boost and – as a result – a smaller mortgage.
Places for People run regular offers to make it easier for you to purchase the property of your dreams. They range from flooring packages and exclusive upgrades for your home, to help with the costs of moving, such as Stamp Duty, removals and legal fees.
Why not check our developments to discover what offers are currently available?
With so many different ways to buy a home, buying new so you can start living life the way you want to no longer has to be the stuff of dreams – it can be a reality much sooner than you think…
When you’re ready to make your move, our expert team will be here to offer you all the support and guidance you need on your home buying journey. We want everyone to have the opportunity to belong to our sustainable, inclusive and thriving Communities and we’d love to answer any questions you might have.