Good news for home-buyers
People buying new-build homes in Market Harborough will see deposits cut by at least £11,000, says Barratt Homes.
The reason is the NewBuy scheme, introduced by the Government to rejuvenate the housing market and help people daunted by hefty deposits.
Previously, a £110,000 home would required a 15 per cent deposit of £16,599 – but with the five per cent deposit available with the NewBuy scheme, this is slashed to £5,500.
The reduction on the deposit could reach as much as £30,000 on Barratt's top of the range family homes at their Farndon Fields, which cost £300,000.
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Barratt has reported the scheme is already proving popular with customers.
Ten per cent of the company's buyers are already using the scheme because of the lower deposit required.
Sales director Sue Blackman said: "We see this as a game changer for the Market Harborough housing market.
"Credit worthy families who have put their plans to buy a new home on hold for the last few years can once again think of their future. It's fantastic news for local home-buyers and the economy.
"Many have been frustrated with the huge deposits of 15 per cent or more needed on the open market and the new scheme is enabling homebuyers to finally get moving.
"Thanks to this scheme the deposit needed for a new home has been radically reduced – customers can borrow more at a lower interest rate than was previously the case.
"We're beginning to see significantly more sales using this scheme and home-buyers' confidence is growing.
"It's important to understand the scheme only applies to new build properties in the area and is not available for second hand homes."
Michael Watkins and Hannah Thorne were among the first to use the scheme to buy a new home after initially believing that they would have to rent for the forseeable future.
Hannah said: "When we found out about the low deposit NewBuy scheme, we realised that we had enough money saved together for five per cent of the asking price, so it just made sense to use our money to invest in our own property."
Barratt Homes' Northampton division, which operates in Market Harborough, has already seen sales during the January to June 2012 period increase by 60 per cent compared with the same period last year. The division legally completed 346 homes worth £58 million during this time.
NewBuy, the 95 per cent mortgage backed by the government, means all purchasers of new build homes, not just first time buyers, can take advantage of the reduced five per cent deposit.
NewBuy is available in England on all Barratt Homes up to and including a sale price of £500,000.
Barratt Homes' Farndon Fields development in Market Harborough has a range of two, four and five bedroom homes priced from £110,000. A typical deposit of 15 per cent would have cost £16,500 but with the NewBuy scheme this could be as little as £5,500, a reduction of £11,000.
For more information, call the sales hotline on 0844 811 3399, open seven days a week from 8am to 9pm, or visit: