Last chance to buy with no deposit says Barratt

Time is running out for buyers wanting to purchase a new home with no deposit through the HomeBuy Direct initiative, warns Barratt North East.

Changes to lending rules mean that from early September they may have to put down a 5 per cent deposit to secure a mortgage through the scheme.

HomeBuy Direct enables buyers to move into a new home for just 70 per cent of the price, with the remaining 30 per cent funded jointly by Barratt and the Government.

Until now, many people haven’t needed a deposit. But some mortgage providers are now insisting on a contribution from all HomeBuy Direct buyers – and other lenders are set to follow suit.

Steve Mariner, Barratt North East sales manager, explained: “As changes come into force in early September, there’s very little time to take advantage of this opportunity to buy without needing a deposit.

“I’d urge anyone who is interested to get in touch with us straight away to find out more. It doesn’t cost anything and we can answer any queries and help with the paperwork.”

The initiative is open to a wide range of people who don’t currently own their own home.

Buyers will be protected against possible falls in property values up to 30 per cent as the Barratt/Government equity share will absorb price risk.

There is no interest to pay on the equity stake for the first five years, although a small fee will be charged from year six onwards.

Steve added: “We’ve had a tremendous response since the scheme was launched. People who have been priced out of the market for years can see this is an outstanding opportunity to buy.”

Barratt has homes available through HomeBuy Direct across the North East in locations such as Newbiggin-by-the-Sea, Hebburn, Blackhall Rocks, Consett, Kirk Merrington, Sacriston, Wingate, Middlesbrough, Stockton and Thornaby.

For further details, visit barratthomes.co.uk/homebuydirect.