Barrat homes are a Uk property developer who builds new homes for people in the United Kingdom.
These homes help reduce the Uk housing crisis by increasing the supply of homes.
You can see the current Barrat homes by going on the Barrat homes website. Ensure you call the sales team to inquire on if a home is still available as it is plausible that some of the homes on the website may have already been reserved.
If you find a Trumpington meadows home which you want to buy you should know that you may need to pay a reservation fee in order for this home to be reserved for you.
Risks of Trumpington meadows new build homes
The risks of buying a Trumpington meadows new build home are that these homes are usually sold at about 15% above market price. This means that you are essentially paying for a price which is above what the home is valued at.
This raises two issues:
- Getting a mortgage
- Getting a remortgage
- Buying off-plan
Getting a mortgage
Getting a mortgage for a Trumpington meadows new-build home could be much harder as many mortgage lenders do not lend on new build homes and those who do may insist on a 20 to 25% mortgage deposit in order for them to reduce their exposure to the new build home.
This means you will have a mortgage loan to value between 80% to 85%.
This makes it much harder to get a mortgage if you have no government help as you will have to save a considerably high mortgage deposit.
The mortgage rates you may find for Trumpington meadows new build homes may also be much higher as there may not be enough competition in the market to force mortgage rates down.
As you are overpaying on the property you will find that mortgage lenders will value the property at its real value and you will have to fund the deficit with your mortgage deposit as well as fund the mortgage lenders deposit requirement based on the loan to value rate they offer you on your Trumpington meadows new build home.
Due to the fact that you are overpaying on the Trumpington meadows new build home, most mortgage lenders are aware that the risk of negative equity is much higher and hence will even have much lower loan to value rates meaning you will have to put down even bigger mortgage deposits.
Getting a remortgage
Getting a remortgage could also have its difficulties as due to the fact that the house was bought at an inflated price you will find very few mortgage lenders who will offer you a remortgage at the same price you paid. This means mortgage lenders will value your Trumpington meadows new build home at its real value when you want a remortgage and this could therefore greatly reduce the amount of equity your initial mortgage deposit may have bought you.
You may even be in negative equity: which is when the mortgage balance outstanding on your Trumpington meadows new build home is more than the home is worth. In this case, you will find very few mortgage lenders who are willing to lend to you for a remortgage.
You may end up as a mortgage prisoner, unable to remortgage to a better mortgage rate due to your Trumpington meadows new build home.
Buying off-plan can also cause a lot of issues.
Buying your Trumpington meadows new build home off-plan is when you buy a home which hasn’t been completed but rather is still in development and you simply buy the home based on the plan.
Mortgage lenders will usually give your mortgage offers which expire in 90 days and this creates a time limit for which you must complete on your mortgage if not you will have to make a new mortgage application and could potentially end p losing your Trumpington meadows purchase as a result of this.
There are some mortgage lenders who will agree to offer you an extension on your mortgage offer for 6 months and even a few mortgage lenders who will offer you an extension for up to 12 months.
Government schemes for a Trumpington meadows home
There are some government schemes which may help you buy your Trumpington meadows home but you should check with the sales team as they may not accept all of the schemes listed below:
- Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership- You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy- similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy- This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy- allows you to buy your home at a discount price.
- Preserved right to buy- same as above.
- Right to acquire- same as above.
Depending on where you live, you may also be able to take advantage of home buying schemes provided by your local council. Example: In Norwich, the local councils provide the Norwich home options scheme.
Getting a mortgage for a Trumpington meadows home
You may want to consider using an independent mortgage broker to get a mortgage.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application. Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.
How to contact Trumpington meadows
You can contact Trumpington meadows on this number during normal working hours: 03333059846
In this brief guide, we discussed Trumpington meadows homes. If you have any questions or comments please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.