Publication Date: 27-01-2023 09:00
Why buying a new home in 2023 could be more affordable than you think
Bellway and New Homes Mortgage Helpline, part of The New Homes Group have joined forces to offer advice to anyone considering buying their first or next home in the North East.
The Newcastle-based national housebuilder and the UK’s leading new-build mortgage specialist are teaming up to share their expertise after they jointly hosted a mortgage event for prospective buyers before Christmas.
Affordability, energy efficiency and mortgage interest rates were the main topics raised by those who attended.
Here, Bellway’s Emma Chesterton and The New Homes Group’s Terry Higgins address the three big questions on would-be housebuyers’ lips.
Can I afford to buy a home?
This is the burning question facing those dreaming of getting onto the property ladder.
Lots of people simply assume that homeownership is out of their reach. But in many cases they are wrong to do so, according to Terry Higgins.
“The perception among some people is that buying a new home is not affordable,” said Terry, Group Managing Director for New Build Mortgage Services, part of The New Homes Group.
“The key is to talk to a mortgage specialist as early as possible in the housebuilding process. We can talk buyers through the products and options available to them and help them to understand how and why it is affordable.
“Owning a property is very attainable. Meanwhile rentals are exceptionally high and that’s money down the drain.”
Emma Chesterton, Sales Director for Bellway’s North East division, says most customers begin their housebuying journey with a visit to one of the developer’s sales offices.
She said: “This is an ideal way not only to see the neighbourhood where they could be living but also the types of properties available. Our sales advisors can show them the plans of house types which could suit their lifestyle and budget, and our showhomes provide fully furnished examples of our homes for customers to explore.
“Once a customer has chosen their preferred plot, we will then refer them to a specialist at New Homes Mortgage Helpline who will go through their finances in more detail and help them secure a mortgage that is right for them.”
Emma said there are schemes available which make it more affordable for people to purchase a new-build property, including Deposit Unlock. This enables buyers to secure a new-build home with just a five per cent deposit and a competitively priced mortgage.
“Saving up enough for a deposit is one of the biggest obstacles facing first-time buyers, so this scheme will be invaluable,” said Emma.
Existing homeowners looking to move can also use Deposit Unlock, as well as benefitting from greater flexibility in the mortgage market, according to Terry.
He said: “A lot of lenders are allowing you to port your existing mortgage over so you can stay with the same lender. This is something that people are asking about more now.”
What will moving mean for my energy bills?
Homeowners are increasingly concerned about energy efficiency. It’s a subject that more and more people are asking about when looking to buy a home, according to Emma.
She said: “Energy efficiency has been a high priority for housebuyers for quite some time, thanks in part to people’s growing awareness of environmental issues and desire to live more sustainable lifestyles. However, this trend has accelerated sharply as the cost of energy has shot up over the past year.
“More buyers are asking about energy efficiency and asking more detailed questions. They want to know what the energy performance certificate of a home is and what that will mean for their fuel bills.
“In the past, house-hunters may not have included energy bills in the mix when looking at the relative costs of different properties. That is certainly changing now, and we have seen a noticeable shift towards new-build properties because of their superior energy efficiency, with construction techniques, technology and materials evolving all the time.
“A recent study by the Home Builders Federation has found that buying a new-build house would save homeowners an average of £2,600 a year on their fuel bills compared to an older property of a similar size. That’s a significant ongoing saving.”
Is now a good time to buy?
Another question many potential buyers are asking is whether they should wait for interest rates to return to the record-low levels seen for much of the past decade before they take out a mortgage.
Terry said: “If potential buyers are waiting for rates to fall back to those levels, they will wait a long time. Things will stabilise, and customers will get used to seeing four, five or six per cent as normal.”
He added that there is currently a wide range of mortgage deals available, with lenders releasing new products or a change of rates every week.
Emma also pointed to temporary measures introduced to support people looking to buy in the near future.
As part of Bellway’s national mortgage contribution campaign, its North East division is offering buyers £1000 a month for up to 18 months on selected homes, available to customers who reserve by the end of March this year.
Emma said: “Customers in a position to reserve with us over the next couple of months will be able to reduce their mortgage by taking advantage of the mortgage subsidy scheme. Buyers will have the opportunity to make a substantial saving which could provide a massive boost to their finances.”
Terry is similarly positive about the prospects for people looking to buy.
He said: “The key thing is to seek advice, get the support and look around. The lenders are willing to lend, the Government is still supporting schemes and there is a market.”
For the full list of developments where this mortgage scheme is available, visit https://www.bellway.co.uk/new-homes/north-east. To find out more about the mortgage contribution scheme itself, visit https://www.bellway.co.uk/new-homes.
