Countryside Properties has found that a significant lack of understanding remains about the home buying process and the benefits of shared equity schemes. The developer conducted research on would-be buyers across its sites in East Manchester* and found that only 11% of visitors understood what shared equity meant and a huge 67% were unclear about the buying process.
The results were particularly evident on its Spinning Vale development in Gorton, where prices for a three-bedroom home have never been as affordable – at only £87,675**. Moving in costs have also been designed to be kept to the bare minimum with Countryside’s new specification, but buyers are falling well before this financial hurdle is taken into consideration.
Ian Hepworth, Sales Director for Countryside Properties said: “Gorton offers fantastic value and potentially a one-off opportunity for local aspiring homebuyers to get onto the property ladder as funding for shared equity is now very limited. Only a 5% deposit is needed in comparison to a typical 20% deposit – this coupled with homes starting for just £70,000 for a 70% share, means that buying a home is now as cheap as renting and it also provides security for the future.
“We want local people to be able to take advantage of what’s on offer by making the buying process more accessible and easier to understand. We are getting lots of local residents through the door at Gorton who are living at home with their parents still or in rented property but we keep coming up against the same barriers that are preventing them from owning their own home such as cultural differences in the buying process and poor credit ratings.”
Countryside Properties and independent financial advisors Chartwell have therefore developed a series of hints and tips to overcome and provide guidance on those common issues.
• Don’t be afraid to check out your credit rating before you try and secure a mortgage. This can be done for free and on the internet with Equifax and Experian. Both offer free trials www.equifax.co.uk www.experian.co.uk/credit_check.
• Work out your finances - what can you afford to pay each month - and make sure you have enough money put aside as there are additional costs to consider on top of the deposit such as solicitors fees.
• Speak to an independent financial advisor, this service should be free, impartial and under no obligation. They should be more interested in what the right option for the buyer is rather than just securing the deal.
• If you are from an EU country, lenders like to see a two year financial history in the UK, so again make sure you don’t get caught out with not paying bills on time.
• If you are a non EU resident, lenders require at least two and half years remaining on your working VISA before they consider you for eligibility.
• Take a look at www.plumlife.co.uk - its easy guide to buying through shared equity is explained simply on its guide to buying a home with HomeBuy Direct.
Peter Crossly from independent financial advisors Chartwell commented: “Poor credit rating is a major problem for the majority of first time buyers; mobile phone companies are particularly aggressive with marking accounts with defaults for a late payment and often don’t even tell the customer. Also the more times you apply for credit the greater the impact on your rating, buyers need to be cautious of being offered mortgages by their banks as these aren’t always the best option.”
Spinning Vale offers a striking collection of brand new 2 and 3 bedroom houses in the city suburb of Gorton, East Manchester. With such an affordable price tag, Spinning Vale offers more traditional house styles perfect for first time buyers and young families to grow into. With first time buyers in mind, the homes include brand new flooring throughout, a contemporary fully fitted kitchen with integrated washer dryer and microwave, stylish fitted wardrobes to the master bedroom plus privacy fencing and turf to the garden.
The homes are available to buy on HomeBuy Direct, offering buyers the chance to buy a property at a fraction of the cost, owning 100% of the property, whilst only paying for a 70% share and no rent to pay for the first five years*.
For more information call 0161 220 8253 or visit www.spinningvale.com or to really appreciate all that this new scheme has to offer, then why not pop along to the show home opening this Saturday: Spinning Vale, Western Street, Abbey Hey, M18 8GD
* 200 visitors were surveyed over June and July 2010.
** Terms and conditions apply. Subject to status.
Countryside Properties is delighted to announce the official launch of its brand new Spinning Vale development with the release of the first 12 homes for sale. With prices starting from just £85,000 for a 2 bedroom house under Countryside Properties shared equity scheme,* purchasers are going to be keen to buy into the exciting development especially as a deposit of only £4,250 is needed.
Spinning Vale offers a striking collection of brand new 2 and 3 bedroom houses in the city suburb of Gorton, East Manchester. With such an affordable price tag, Spinning Vale offers more traditional house styles perfect for first time buyers and young families to grow into. Countryside’s new standard specification has been designed to keep moving in costs to the minimum and with first time buyers in mind; the houses include brand new flooring throughout, a high gloss fully fitted kitchen with integrated washer dryer and microwave, stylish fitted wardrobes to the master bedroom plus privacy fencing and turf to the garden.
The new show home is now open, ready for potential buyers to come and see for themselves the aspirational lifestyle attainable, with its quality design and modern and funky interior. The first 12 homes released are available to buy on Countryside Properties’ shared equity scheme, giving you the chance to own your own home at a fraction of the cost. A 2 bedroom house will cost just £85,000 and a 3 bedroom home only £106,250 for an 85 per cent share through the scheme, plus you won’t need a huge 20% deposit (around £20,000 plus) demanded by most lenders for properties that do not have the financial assistance.
With the remaining 15 per cent share covered by Countryside Properties and no rent to pay or interest to pay on the share for ten years, the scheme is proving particularly popular amongst buyers struggling to come up with the steep deposits now required by mortgage lenders.
For more information call 0161 220 8253 or visit www.spinningvale.com or to really appreciate all that this new scheme has to offer, then why not pop along to the show home opening this Saturday: Spinning Vale, Western Street, Abbey Hey, M18 8GD
*Prices are based on a shared equity percentage of 85%. Countryside Properties terms and conditions apply. Subject to status.