MIRROR AFFORDABLE HOMES SUPPLEMENT

EDITORIAL COPY FROM NEW HOMES MORTGAGE HELPLINE

November 2008

10 point plan for new build recovery

Homebuyers wanting a new home can benefit from the current market conditions by securing favourable prices and good deals, as long as they are able to move quickly.

Nic Spaull, Managing Director of New Homes Mortgage Helpline said: "The new homes market is well positioned to recover strongly, as soon as finance in the mortgage market begins to flow more freely and buyers are able to access the finance they need. There is a shortage of new homes which is likely to worsen over the next couple of years as demand continues to outstrip supply, which will drive prices up over the next five or so years."

Follow New Homes Mortgage Helpline's ten point plan to come out on top of the new homes market:

Be prepared to move fast. Housebuilders save the best deals for those buyers who can move immediately, so make sure you are in the best position to negotiate on price.
Sort your finances - lenders are still lending! Contrary to popular belief, mortgages with decent rates are out there for buyers who have a 10 - 15% deposit. Housebuilders are willing to do deals, but buyers won't be taken seriously if they haven't organised finance in advance of trying to negotiate a deal. Ask New Homes Mortgage Helpline for advice.
Use Part Exchange to sell your existing home. In this market, new home buyers often find themselves unable to buy a new home because they can't sell their existing property. Remove the chain by part exchanging your current home for your new home, and let the housebuilder worry about selling it.
Talk to your housebuilder. The offer they are advertising might not be the right one for you, but they might be willing to negotiate. Buyers may find they can swap free white goods, for example, for free legal fees.
Consider a shared equity/ownership deal, where you own the property jointly with a Housing Association and the housebuilder. This is a great low-cost way to get onto the housing ladder and is open not just to key workers, but to any household with an income of less than £60,000.
Consider buying off plan. Housebuilders who want to generate early income on a development will often sell some, if not all, units off plan. This can be a great opportunity for customers to secure a favourable price.
Check for a building warranty from a body such as National House Building Council or Premier Guarantee. This guarantees the builder's work and ensures high standards are met.
Find out which soft furnishings and decorative extras the housebuilder is willing to include. Often customers can negotiate on carpets or curtains, and even choose the style of their kitchen if they reserve early enough.
Ask about mortgage protection insurance - housebuilders and mortgage brokers sometimes include it as part of the deal, offering peace of mind to today's homebuyers.
Visit a new homes portal such as www.smartnewhomes.com, to search for new homes in your area and for an overview of the best developer deals.