No deposit, no problem says Barratt

Simon Elphick, 42, was paying £600 a month in rent for his two-bedroom apartment in Eastbourne before he discovered that he could afford to buy a brand new apartment at Barratt’s stylish H20 development – even though he lacked the money for a deposit.

He spotted an advert in the local paper about a new shared equity scheme which would allow him to buy 75 per cent of a property at H20, whilst Barratt Southern Counties paid the other 25 per cent as an interest free deferred loan. Barratt’s 25 per cent share also acted as a deposit – so that Simon didn’t need to find the funds himself. Now Simon is paying just £284 a month in mortgage repayments for his £95,000 home - £316 less a month than he was paying before – and has picked up the keys to his very own one-bedroom apartment.

Simon said: “This shared equity scheme by Barratt was the only way I could buy somewhere of my own without any savings for a deposit. Before I found H20, it seemed like renting was the only option but since property prices have dropped in recent months I saw an opportunity to be able to afford my own place. I’m so glad I took the plunge and got on the ladder – it’s definitely been worth the wait.”

H20 is a contemporary Art-Deco style development comprising both one and two-bedroom apartments in the excellent location of Susans Road. Simon, who works as a maintenance officer for the local theatres in Eastbourne, finds its situation very convenient as he doesn’t even need a car. “I can walk into the town centre in literally 60 seconds and on my bike it only takes me five minutes to get to work – which means I can save even more money as I’m not paying for taxis all the time,” he adds.

Simon took advantage of Barratt’s recommended solicitors and financial advisors, who helped his purchase to go through smoothly. He also was able to handpick the exact kitchen and bathroom he wanted for his new home as he bought off-plan while his home was going through the construction process. He visited the Barratt Choices Centre in Guildford to see all of the options available and was able to choose from an enormous range of state-of-the-art fixtures and fittings.

Barratt has lots of different ways to help people to get on and move up the property ladder. HomeBuy Direct is a fantastic new scheme supported by Barratt Southern Counties and the Government which enables buyers to move into a new home for just 70 per cent of the purchase price.

Homebuyers taking advantage of it can receive an equity loan of up to 30 per cent, funded jointly by Barratt and the Government. The buyer then finances the remaining 70 per cent of the purchase price either through a mortgage, a deposit or a combination of the two. There is no interest to pay on the joint Barratt/Government equity stake for the first five years, although a fee will be charged from year six onwards. The scheme is available on a selection of one and two-bedroom apartments at H20, prices currently start from £99,995.

Lynnette St Quintin, sales director of Barratt Southern Counties, said: “HomeBuy Direct is a great opportunity for people with little or no deposit such as first time buyers, key workers, long-term renters or growing families needing extra space. I would encourage anyone who thinks they can’t afford to buy their own home to come down to H20 to speak to our sales team.”

Households eligible to take advantage of the offer will be earning less than £60,000 and would not normally be able to afford to buy a suitable property on the open market. Buyers can redeem the loan in installments, purchasing up to 100 per cent of the equity after their initial purchase by buying additional equity at the market rate. Alternatively, if the property is sold, the equity loan is repaid by way of a share of the sale proceeds.

It’s not just First Time Buyers and Key Workers who can benefit. People who have previously owned properties but are now unable to do so – for example, in cases where relationships have broken down – can also apply.

Susans Road is located in the exclusive Meads Conservation area of Eastbourne. The beach is a few minutes’ walk away and at its eastern end, a modern, locked marina is one of the largest along the South Coast. Communications by road, along the coast to Newhaven Ferry terminal, inland to Gatwick airport, and up to London are very good. A regular train service brings Brighton within 30 minutes reach, whilst London is approximately 90 minutes away.

Simon thinks Eastbourne is a great place to live and work and is looking forward to spending the summer in his new home: “Some of my friends live close by so it’s great to go out to the pubs and clubs in the evenings – and being so close to the beach is definitely going to be plus!”

Prices at H20, Eastbourne, Susans Road, Eastbourne, East Sussex, BN21 3HA currently start from £99,995. For more information, visit Barratthomes.co.uk.