Incentive schemes to buy a new build home

Looking to buy a new build home? There are plenty of perks to choosing a new build property, including various incentive schemes to help you make that dream a reality!

New builds are a popular choice among buyers because they offer energy efficiency, resulting in lower running costs, and come with a 10-year building warranty for added peace of mind. Plus, there are several financial incentive schemes specifically available for purchasing a new build, making it easier to get on or move up the property ladder.

Let’s explore the different incentive schemes available to help you buy a new build home, whether you’re a first-time buyer or an existing homeowner.

Government schemes for new build buyers

The government offers a variety of schemes aimed at both first-time buyers and existing homeowners, some of which are designed for new builds. One scheme is the Lifetime ISA, which can boost your savings toward a new build purchase.

Other key government schemes include:

First homes scheme

As a first-time buyer, you may be eligible to purchase a new build home at a 30-50% discount from its market value. To qualify, you’ll need to secure a mortgage for at least half of the home’s price, and your combined household income must not exceed £80,000 (or £90,000 in London).

Certain councils may prioritise discounts for essential workers, local residents, or those with lower incomes. This scheme could be a fast-track way to get onto the property ladder.

Shared ownership

With shared ownership, you can purchase a share of a new build home—between 10-75%—and pay rent on the remaining portion owned by a landlord, which could be a housing association or local council.

Shared ownership offers a more affordable route to homeownership, and you can gradually buy more shares over time. If you own 100% of the property, you can sell it on the open market. If you own less than 100%, you’ll need to inform your landlord before selling.

Builder incentive schemes for new build homes

In addition to government support, many developers offer incentive schemes to make buying a new build even more attractive. These can range from helping with your deposit to covering your moving costs.

Part exchange your current home

If you’re struggling with the homebuying chain, developers may offer a part-exchange deal. This is where they purchase your current home, ensuring a guaranteed sale. This means you won’t have to worry about finding a buyer, dealing with estate agents, or organizing viewings.

To qualify for part exchange, you need to be an existing homeowner moving into a new build property, and each developer will have specific terms for these transactions.

Own new scheme

The own new scheme offers a low-deposit mortgage option that allows you to purchase a new build with just a 5% deposit. Since new builds are often higher in value and may depreciate over time. Lenders can be cautious about offering low-deposit loans. However, Own New reduces the risk for lenders, making it easier to access a mortgage at favourable rates.

This scheme is available to both first-time buyers and existing homeowners. Offering more flexibility for those looking to buy a new build.

Deposit paid

Some builders offer a cash incentive to help fund your deposit or cover other moving costs. These incentives, which can be up to 5% of the property’s purchase price, are paid to your solicitor upon completion. Keep in mind that you’ll need to declare this incentive to your mortgage lender.

Stamp duty and other costs

Many developers also offer discounts or contributions toward buyer costs, such as stamp duty or legal fees. These incentives may include additional perks like white goods for your kitchen or landscaping for your garden. Making your new build purchase even more appealing.

Expert advice for new build mortgages

If you’re considering using incentive schemes to buy a new build home, or if you’re ready to take the next step, we’re here to help. Our expert advisers can guide you through assessing your affordability, finding the best new build incentive schemes, and securing the right mortgage for your new home.

Get in touch today, and let’s start your journey toward owning a new build home!