Help to Buy scheme in demand across North East

North East buyers are taking the opportunity to snap up a brand new home through the Government’s ‘Help to Buy’ initiative.

The scheme enables buyers to purchase a new-build property with just a five per cent deposit and a 75 per cent mortgage.

It has generated huge interest since it was introduced in April and Barratt North East reports that it has already sold more than 20 homes through the scheme and is processing a further 40 sales.

The company is offering Help to Buy at all of its developments, including Beechwood at Sacriston and Merrington Park, Spennymoor, where buyers can choose from a selection of brand new homes.

Homes available at Beechwood include the popular ‘Palmerston’, which offers over 750 sq ft of living space and is priced from £125,500. It has an open-plan living room, fully-fitted kitchen with dining area and French windows, two double bedrooms, a third single bedroom, and family bathroom.

At Merrington Park, Barratt has three-bedroom homes from its new County Range, including the ‘Aylesbury’, a lovely semi-detached house with 800 sq ft of living space priced at £135,000.

The magic of Help to Buy, according to Barratt sales director Fenton Hewitt, is that buyers only need a 75 per cent mortgage.

“This means they can get a loan at a lower interest rate, which in turn means monthly payments are much cheaper than with a higher loan-to-value mortgage,” he said.

“This not only benefits first-time buyers but also ‘second steppers’ already on the property ladder, because it makes moving up to a larger home much more affordable.

“There’s no doubt the scheme is giving a real boost to buyers locally and we believe this will continue to grow, as people realise they can not only buy with a significantly lower deposit than they thought, but can also get low-cost mortgage finance.

“In short, it’s a terrific opportunity to buy a bigger home with a smaller mortgage.”

Through Help to Buy, the Government will lend buyers up to 20 per cent of the value of a new-build home worth up to £600,000, leaving them to put down a deposit of five per cent and obtain a 75 per cent mortgage. There is no interest to pay on the Government loan for five years.

Showhomes are open at Beechwood and Merrington Park from Thursday to Monday. For details, visit barratthomes.co.uk.