Options to help you get moving

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For Help to Buy is an option for both first time buyers and existing homeowners, But it isn’t the only scheme on the market to help house-buyers, says Sam Wood sales director, Barrett Homes Yorkshire West.

Part exchange is also a very worthwhile option, but buyers must be aware that they are unable to use the two together – a choice must be made.

But first things first - what is Help to Buy? And what is part exchange?

Help to Buy has two options. Option 1 relates only to new-build properties, and is available to both first-time buyers and existing homeowners. The Government will lend you up to 20% of the value through an equity loan, which can be repaid at any time or on the sale of your home, leaving you with a 75% mortgage, having only required a 5% deposit.

Option 2, open to all borrowers and all property types, is a mortgage guarantee scheme. Again, buyers need just a 5% deposit, but the Government guarantee will encourage lenders to offer better access to low-deposit mortgages, meaning they will have up to a 95% mortgage. For both options, existing homeowners will need to sell their current property.

Part exchange varies from company to company - but most follow a similar blueprint. If you would like to buy a new build, the developer will purchase your home from you in exchange. At Barratt Homes, the property you are looking to buy would need to be more expensive than the one that you want to sell, and the price offered will be a fair reflection of the market value. We use two independent valuations to determine our offer price. Barratt Homes also offers an exclusive part exchange extra scheme, which gives buyers the opportunity to achieve the best price for their current home. Barratt supports the marketing of your home, we will also guarantee that if it hasn’t sold by an agreed date, we will buy your home and take it in part exchange. The scheme provides buyers with an assurance that both their sale and purchase are secure.

But, of course, that’s only half the battle – how do you decide what’s best for you? If you are a first time buyer, Help to Buy, and particularly option 1, is more than likely to offer you the most in terms of value. If you are a second or third ‘stepper’, then you do have a number of options, depending on whether you have already sold a property. Help to Buy will assist you if your existing property has sold, and part exchange or part exchange extra will help you to sell your home so you can make your move.

Carefully analyse all of the options, research thoroughly and think about both short and long term implications. Visit Barratt Homes