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Why 'Help to Buy' a new build home has the edge

12th November 2013 Print
Redrow Homes

With so many help schemes available to assist homebuyers, you’d be forgiven for being somewhat bemused.

In fact new research has shown that 71% of people surveyed by a popular money saving website said they found the Government’s Help to Buy schemes ‘confusing’.

But housebuilder Redrow, building at Kings Acre in Crawley Down, is determined to allay any uncertainty and explain why the first phase of the scheme is an invaluable boost for buyers of new-build homes.

Kerry Jenkins, head of sales for Redrow Homes (South East) said: “Undoubtedly there is some confusion among consumers between the two different phases of Help to Buy and which is best for them.

“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.

“So far over 15,000 new homes have been reserved across England using the first phase of Help to Buy, which launched in April, including a number at Kings Acre.

The Government has set aside £3.5bn to help up to 74,000 home buyers through this element of the scheme, which will run until the end of March 2016, or when the funding runs out.”

The second phase of Help to Buy, which launched on October 8, works differently. It is available on all homes and comprises a mortgage guarantee on mortgages up to 95% loan to value.

Kerry explained: “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 offered on new build homes under the first phase of the initiative.”

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.

“At Redrow we have specialist mortgage advisers available to talk customers through the different options and help them decide which is the best for their individual circumstances,” Kerry said.

Through the Help to Buy equity loan scheme, a beautiful four-bedroom detached house priced at £459,995 can be purchased with a 5% deposit of £23,000 and a 75% mortgage of £344,996, with a 20% equity loan provided by the Government for £91,999.

Perfectly set in the picturesque village of Crawley Down, close to the M23 and seven miles from Gatwick Airport, Kings Acre complements the surrounding established family homes.

Crawley Down lies in the north east corner of West Sussex, just one mile from the border with Surrey.

There are good commuter links from the nearby railway stations of East Grinstead and Three Bridges, from where direct trains into central London take around 35 minutes.

Meanwhile the popular south coast resort of Brighton is less than 30 miles away.

For more information on the home or development itself, which is open every day from 10am to 5.30pm, homebuyers can visit Kings Acre on Grange Road without appointment. Alternatively, visit the website at

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Redrow Homes