New build home deals:
Another option that is specifically offered by construction companies and property developers is similar to shared ownership except you will be able to own the entire property.
Positive: The construction firm will offer to lend you money for the deposit. So you won’t need to borrow as much for a mortgage. Better yet it is usually interest-free.
Negative: You will still need to repay the developer after the loan term is up. So it is possible to end up with a large sum to pay back. An example of this of this is when the housing developer leads you 20% of the property value and you have to repay it in 15 years.
Eligibility: What type of offer you negotiate depends on where you want to buy and which construction companies you deal with. Remember as a first-time buyer you will be an attractive prospect.
Are there any extra costs? No.
Verdict: If this option interests you, make sure you can repay your mortgages as well as make sure you can make appropriate loan repayments every month. It is also imperative that both the mortgage and loan agreement with the construction company allow you to sell your home in order to repay your debts without penalty if you wish to at a later in time.