20th January 2020
Why rent when you can buy for less
Buying rather than renting a home in East Lindsey could save people thousands, according to new research.
According to the BBC, the average rent for a two-bedroom property in East Lindsey ranges from £451 to £534 a month. While this is significantly cheaper than the national average of £926, buying a newbuild property in the same area could cost much less than renting.
The two-bedroom, semi-detached Buttermere at Chestnut Homes’ Bridgeways development in Alford can be purchased with a deposit as low as £6,600 and a mortgage from £304 a month, when using the government-backed Help to Buy scheme.
David Newton, Managing Director of Chestnut Homes, said: “Many people see purchasing property by the coast as an expensive feat, however when you look at the figures it could in fact cost much less to purchase a new home as opposed to renting. Our Bridgeways development in Alford, which sits just 11 miles from the coast is a great example of this. The two-bedroom Buttermere property can save house hunters thousands of pounds a year, especially with the use of Help to Buy.”
The scheme allows buyers to put down a five per cent deposit and a 75 per cent mortgage, with the remaining 20 per cent supplied as an equity loan which is interest free for the first five years.
For purchasers who do not wish to use Help to Buy, a 10 per cent deposit on the two-bedroom Buttermere style property at the development would cost around £13,250, with a mortgage from just £384.29.
Both options work out as significantly cheaper in monthly payments, as well as saving homeowners thousands in the long run.
Chestnut Homes is currently building 103 two, three and four-bedroom homes at its Bridgeways development, off Willoughby Road in Alford.
Help to Buy is available on all the house types at the development, making it perfect for those looking to step onto or up the property ladder.
- Mortgage figures correct on 21st October 2019. Figures provided by Oliver Peace at James Leighton Financial Services.
- National figures found on https://www.bbc.co.uk/news/business-23234033
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