First-Time Buyer Developer Launches Rent-Free Homebuying Scheme
Fairview’s exclusive Save to Buy scheme enables first-time buyers to save for their final deposit via fixed monthly payments while living in their new home.
Save to Buy monthly payments are based on the area’s average monthly rent and the buyer’s personal finances, of which 100% goes towards the buyer’s deposit and/or affordability deficit on the Fairview home.
Available on selected Fairview plots in and around London, the Save to Buy scheme will run until December 2023. Those using the scheme will have up to two years to complete on their Save to Buy property.
With Save to Buy, Fairview is providing a foothold for renters attempting to get on the property ladder after a record 12-month increase of 16.1% in advertised rental prices in London*.
Having conducted a survey of 1,000 first-time buyers regarding their home ownership ambitions and roadblocks, Chris Hood, Sales and Marketing Director at Fairview, explains why Save to Buy is the solution for many: “Our survey found that 79% of renters in the UK and 83% in London feel the cost of renting is negatively impacting their ability to save for a house deposit. In fact, almost two-thirds (64%) blame the cost of rent for saving little or nothing at all towards a house deposit. The Save to Buy scheme is designed to break the vicious rental cycle, which could save first-time buyers in London around £15,000 in rental payments over a year**.”
In a Bank of Mum and Dad survey conducted by Fairview, 2,000 parents of 18-35 year olds were asked about the home ownership prospects for their children. According to the survey, parents across the UK believe it will take over five years on average for their child to buy their first home. Over a third (36%) believe it will take over six years, if at all.
Hood continues: “To parents concerned about how much rental costs are holding back their children: the Save to Buy scheme could bring forward home ownership for your children by six years based on how long it would otherwise take to save a deposit. We know over a third of parents feel unable to help with financial support for a deposit, and we want to help empower first-time buyers to take that leap of independence while giving them the breathing space to save their own deposit.”
According to Fairview’s survey, parents believe having enough funds for a deposit is one of the biggest obstacles for their children in buying a house.
Save to Buy is available on select Fairview properties and can be found on the Fairview website here: Fairview.co.uk/savetobuy
Below are examples of Save to Buy terms and resulting deposit savings:
|Minimum deposit to exchange||Monthly deposit payments||Save to Buy term||Total Save to Buy deposit built
First-time buyers aged 18+, in full-time employment (for a minimum of three months) with minimum savings of 1% of the value of the house they wish to buy. You will need to be qualified by a third-party financial advisor to confirm affordability and credit score.
What deposit do I need in order to secure a Save to Buy home?
You only need a 1% deposit to get started once you have qualified for the scheme.
How long can I use Save to Buy for?
The maximum term a buyer can use this scheme is two years, although Fairview expects most to complete their home purchase within six-12 months.
What type of house can I buy?
Fairview’s Save to Buy scheme is available on selected plots in developments in London and Essex. All Save to Buy Fairview homes currently available can be found here: https://www.fairview.co.uk/buying-with-fairview/save-to-buy/
When is the deadline to use this scheme?
Save to Buy will run until the end of 2023.
Can I pay more in my fixed monthly deposit payments in order to complete the purchase quicker?
Absolutely. You can either pay the minimum fixed term or pay an increased amount agreed with Fairview. If you find you are able to complete the required deposit sooner than expected, you are under no obligation to remain in the Save to Buy term if you’d like to complete sooner. There’s always ways Fairview can help to complete sooner.
What if my circumstances change?
You will be advised to speak to your sales advisor as all situations will be treated on an individual basis. If a buyer decides not to proceed with the property purchase after exchanging, the 1% deposit will be refunded, however monthly deposit payments made to date would not be returned.
How much of the property will I own once completed?
You will own 100% of the property. Once legally completed, Fairview will have no share of the property – it’s all yours to make into a home.
How do I apply?
Get in touch with a member of the Fairview Save to Buy team on [email protected] or call 020 8023 7092.
What’s the catch?
It will be first-come-first serve, so Fairview encourages people to register their interest and talk to a member of the team as soon as they can as they are expected to be snapped up quickly. Plots will be released throughout the year, so if you are not in a position to take part right away you will be added to a waiting list.
Fairview New Homes is hosting a launch event for the scheme on Saturday 4th February at its Epping Gate development in Loughton, Essex. The event is open to first-time buyers looking to find out more information about Save to Buy.