Looking to buy a new home in Brighton? Here's how to do it without a big deposit
- Credit: Optivo
Buying your own home – a well-respected milestone many young people aspire towards. But as the post-pandemic climate sees housing prices soar, particularly by the coast in Brighton, it begs a commonly asked question: 'Will we ever be able to save up enough money to buy our first home?'
“So many young people worry that they need to have a large deposit to secure a mortgage and that’s just not the case. There are various ways to buy your own home and get on the property ladder without having the money in your back pocket,” says Jane Williams, head of sales and marketing at leading housing provider Optivo.
Optivo's latest development is part of an exciting £300 million Preston Barracks masterplan that will bring a new sense of community to the area.
The development will offer plenty of landscaped outdoor space, including a podium garden and allotments, concierge, a wellness area for residents, retail space and restaurants. It is also next door to Plus X, a collaborative workspace handy for those who want a separate home and work life without a big commute to the office.
Here, Jane shares the different options for home ownership and how you can use them to buy one of Home X’s trendy studio, one two and three bedroom apartments in North Brighton’s newest neighbourhood.
The ‘Help to Buy’ scheme
‘Help to Buy’ is a government-backed equity loan, which buyers can use towards a deposit to secure a mortgage. The scheme makes new home purchases more affordable and helps you to achieve the milestone sooner, rather than waiting to save up enough money for a deposit. For example, if you’re a first-time buyer, you need to pay a minimum deposit of five per cent of the property price and the equity loan can then cover up to a further 20 per of the deposit. This will leave you to arrange a mortgage to cover the remaining 75 per cent.
“With Help to Buy, it’s interest free for five years, and can be paid back within that time frame to save some money, or when the house is sold,” Jane explains. “From the sixth year, you will be charged an interest rate of 1.75 per cent, rising by two per cent each April.”
This is another government-backed scheme, designed to make stepping onto the property ladder more affordable. Shared ownership is ideal for someone looking to buy a home, but without the financial means to do so.
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“Perhaps you can’t afford a large enough mortgage to buy a property, or you are on a moderate income but haven’t actually saved any money to put towards a deposit – in which case, shared ownership is an option to consider,” Jane says.
“You’ll begin the process by purchasing between 25 to 75 per cent of your home, and then pay a subsidised rental fee on the remaining part of the apartment which you don’t own,” she explains. “The bit you own is called a share,” she explains.
This makes the initial costs much lower, because your mortgage deposit (which is available from 5 per cent) will be based on the value of the share that you buy and not the full market value.
Jane explains that as you buy extra shares, you can increase the percentage you own all the way through to 100 per cent. “This is called staircasing,” she says. “And so, the more you own, the less rent you’ll pay. It’s a really great way to gradually buy your home without saving up for a full deposit.”
What’s on offer through Home X’s home ownership schemes?
“We have some stunning, brand-new apartments available for those who may not have a full deposit,” Jane says.
Home X is part of one of the city’s largest regeneration project, and the destination will provide 369 new homes conveniently situated in close proximity to amenities and transport links.
“Our spacious apartments are second-to-none, with contemporary furnishings and stylish bathrooms and kitchens. Designed with matt black fixtures and fittings, it doesn’t get more on-trend than this,” Jane explains.
“The apartments are smart and energy efficient, with integrated appliances and underfloor heating throughout. The communal spaces included with the property makes it a truly enjoyable place to live,” she adds.
So, whatever you’re looking for, Home X is committed to finding you a perfect property to get you on the housing ladder through a financial route that’s suited to you.
Visit home-x.co.uk for more information on Brighton’s new apartments and home ownership options.