WHY PAY ROYALLY TO RENT WHEN YOU CAN BUY AT VICTORIA PLACE?
27 February 2017
Many would-be buyers choose to rent because they fear the first rung of the property ladder could be a financial step too far.
But with Lovell’s Victoria Place development in Birkenhead, it could actually work out cheaper each month to buy a new home.
“Lots of people dream about buying their own home but they are put off from making the move because they are concerned about the cost, especially in the early days with thoughts of a huge deposit and large monthly repayments,” says Clare Noakes, regional sales director for Lovell Homes in the North West. “But it might not be as impossible as they think.
“In fact, it can even work out better to buy. Not only would home buyers be paying out money for which there is a return rather than it going into a big black hole, but the monthly payments, incredibly, may even be lower.”
Lovell is set to unveil the new sales arena at the Church Road development in May with three properties which will open for viewings, giving house hunters a thorough insight into the style and specification of the two, three and four-bedroom properties there.
House prices start at just £105,995 for the two-bedroom Tatton property, rising to £159,995 for the four-bedroom end-mews Swanford.
Through Help to Buy home owners can pay as little as 5% deposit and get a government-back equity loan for 20% of the overall purchase price, interest-free for five years. That means, using Help to Buy, buyers could invest in a Tatton with a deposit of only £5,299.75; an equity loan of £21,199 and a mortgage of £79,496.25. It could mean a monthly mortgage sum of £331.17, based on a 2 year fixed rate mortgage at 1.85% on a term of 25 years with no upfront fees*, compared with average rent prices for a similar property in the area of £400-£450.
Ian Kelly, director of Chartwell Mortgage Services, adds: “It hopefully means that the buyer is building up stock in the property whereas this won’t happen with a rented home, and it certainly means that the monthly payments are much lower.”
Victoria Place will eventually feature 50 homes, all with off-road parking, a garden and a patio area, in a location which is ideal for commuters to Liverpool, being so close to the Birkenhead tunnel. There is a selection of local shops, and primary and secondary schools, all within walking distance, and the town has a superb range of leisure facilities including a Vue cinema, Europa swimming pool and Mersey Park.
For more information call 0151 515 6309 or visit Victoria Place.
*£331.17 for 27 payments at 1.85%, followed by 273 repayments of £401.57 at a variable rate, currently 3.74%.
This is based on HTB, therefore 20% is funded by the government by way of a 2nd charge on the house. The amount repayable on this loan will be based on 20% of the market value when the client decides to repay the debt or sells the property. The first five years are interest free but the client will pay £1 a month charge. In the sixth year the client pays interest based on a rate of 1.75% of the equity loan plus 1%. The fee rate slowly increases year on year in line with the Retail Price Index.