Buying could be cheaper than renting with Barratt West Midlands
Owning your own home has lots of benefits, but many buyers still think that they cannot afford to buy. However, Barratt West Midlands is helping change this perception and homebuyers in Wednesbury will soon discover that it could be cheaper for them to buy than rent at its Edenside development on Elwell Street.
Edenside offers a selection of two-bedroom apartments which are currently available to buy with the new Government scheme, called HomeBuy Direct. This initiative allows purchasers to receive a 30 per cent equity loan on the value of their new home and means that a two-bedroom apartment which is usually priced at £85,950 could be available to move into from as little as £60,165.
Katie Yates, Sales Manager for Barratt West Midlands commented, “HomeBuy Direct is a fantastic scheme which means that current homeowners who need to upgrade to a bigger home because they need the space may find that they are now able to afford to do so. Plus anyone currently struggling to get their foot on the property ladder could soon find that their dream becomes a reality.
“Homebuyers are often overwhelmed at the prospect of having large monthly mortgage repayments, but with the chance to move into a home for less than £61K with HomeBuy Direct, the monthly mortgage figure could be much less than the average monthly rental figure of £473.*”
Lisa Burns-Kent, Sales and Marketing Manager at New Homes Mortgage Services, the independent financial advisory (IFA) firm recommended by Barratt explained, “With the HomeBuy Direct scheme on a property of this value, homebuyers can expect an average monthly mortgage repayment of £383.61 which compares very favourably with the rental figures for the area.”
Katie continued, “Owning a home of your own can provide many benefits such as increased flexibility and security, plus it remains to be a great investment compared to those who rent, who will see no return on their money. This is a great chance to get a foot onto the property ladder whilst saving money, so why not come along to Edenside and find your dream home today.”
Eligible purchasers using HomeBuy Direct will benefit from a 30 per cent equity loan which is jointly funded by Barratt and the Government. The final 70 per cent is financed by the purchaser either with a mortgage, a deposit or a combination of the two.
Paul Spooner, regional director for the South East division of the Homes and Communities Agency, said: “In the current climate it’s important that we help a range of people to find the best housing option to suit them, and simultaneously help stimulate the building of new homes. HomeBuy Direct, with our £400 million investment, is just one way in which we’re doing this and it is proving extremely popular.”
The scheme is open to first-time buyers, key workers and others who are currently renting. People who have previously owned a home but are now unable to do so – perhaps where relationships have broken down – can also apply. Households eligible will be earning less than £60,000 and would not normally be able to afford to buy a suitable property on the open market. 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.
Edenside offers a selection of two-bedroom apartments priced from £85,950 and just two, four-bedroom houses priced at £194,200. For more information, log on to barratthomes.co.uk/edenside.
* Monthly rental figure taken from findaproperty.com.
** The average monthly mortgage figure is based on a purchase price of £60,165 with a fixed term mortgage taken over 25 years. With an interest of 5.89 per cent fixed for three years. The actual rate available will depend upon your circumstances. Ask for a personal illustration.
