Barratt chips in for first-time buyers

By Heather Rose
Posted: 2008/04/18

AS MORE young first-time buyers struggle to raise the money for their home in the wake of the credit crunch, we discover a builder with a cunning plan.

HOUSEBUILDER Barratt is stepping into the role of favourite uncle to help first-time buyers gain a foothold on the property ladder.

Aware that many parents are now providing financial help to youngsters to assist them with the key of the door to a home of their own, Barratt East Scotland say they will match whatever the parents put in.

Termed their Parent Power deal, it is on offer for a limited time and is both plot and site specific. This novel deal is up to five per cent of the home's purchase price. On a home costing £100,000, the Barratt deal could amount to a £5,000 contribution.

Angela McKimmie, sales director with Barratt East Scotland, said: "We are finding more and more that, when we are selling to first-time buyers, we are selling to their parents as well. They want to contribute to the purchase and are genuinely surprised to find out how easy and affordable it can be.

"Quite often, parents see helping with the deposit as an efficient use of their own savings, especially given the relatively low returns to be gained from other forms of investment. For others, it is more a case of the family pulling together to get their children into home ownership.

"But it's not just about chipping in with the deposit, there are other ways parents can help, such as being a guarantor or a joint mortgage applicant.

"This can enable first-time buyers to borrow more, bringing house prices within their range.

"Providing the children are making all or most of the mortgage repayments, it need not break the bank for the parents." Ms McKimmie added: "Barratt can help in many different ways and we are happy to sit down with first-time buyers and their parents in order to tailor a package to suit individual needs.

"This could include a contribution of up to five per cent of the purchase price to assist with whatever is required, such as help with the deposit, buying costs, carpets or furnishings.

"Rising house prices have been making it tougher for would-be buyers, so numerous builders have been introducing schemes to help ease the financial burden." Many have launched shared equity schemes which make it possible for people to buy a property that might otherwise have been beyond their financial grasp.

Enabling buyers to purchase 75 per cent or 80 per cent of the home's cost, this lightens the buyer's financial outlay during the early years of ownership. The remaining 20 or 25 per cent is usually repaid within 10 years or earlier if the property is sold by then.
Other forms of help introduced to help first-time buyers have include buy-with-friends schemes, which came in about 18 months ago. They encourage friends to join forces and purchase a home together, sharing the initial cost for the deposit and splitting the mortgage repayments.

However, first-time buyers are still finding home ownership difficult on their own. When Barratt became aware that around half of all first-time buyers receive some form of financial assistance to enable them to become home owners, they launched their new Parent Power incentive.

.Information: 0845-604-9400; www. barratthomes. co. uk

COMPLETION looms at Elphinstone Homes' landmark Corinthian Quay waterfront development at Granton Harbour, Edinburgh. Only five of the 91 apartments are available.

Carpets are included, with tiled floors in kitchens, bathrooms and en suites. As well as hob, oven and canopy hood, kitchens come with a microwave oven, washer-drier, fridge-freezer and dishwasher.

INFORMATION:
0131-552-6409 ¦

URBAN regeneration developer Alba Town has released the final 18 apartments at a 142apartment Merchant Building beside Glasgow Cross.

Andrew Borthwick, the managing director of Alba Town, said: "The Merchant Building appeals to young professionals, people who are downsizing after their grown up children have left and people who frequently work away and need easy access to the rail stations."

INFORMATION:
0141-552-4000; www. albatown. net

Strathclyde Homes is staging an open weekend at their Scholar's Gate development in Bathgate, West Lothian.

Running tomorrow and Sunday, the event will include food and wine from a local delicatessen, and artwork from a local gallery.

Tomorrow an interior design specialist will be providing advice on preparing a home for sale.

The event will take place within their 2,200 square foot Burns villa, a design selling at £298,000.

INFORMATION:
01506-650637; www. strathclydehomes. co.uk