New scheme’s bid to beat homebuyers’ deposit gap

ANYONE looking to take their first step on the housing ladder in the East Midlands may now only need a five per cent cash deposit thanks to a new scheme which enables customers to borrow up to 15 per cent of the cost of the property up front.

Raising a large enough deposit is often the biggest barrier to buying a place of your own as many banks currently ask buyers to put down a deposit of 20 per cent.

But help is now at hand for anyone with a good income but a low deposit who is looking to buy a new home from Barratt East Midlands – they can apply for an unsecured personal loan of up to £50,000 from Hitachi Capital.

Hitachi Capital has teamed up with Aldermore Bank, a specialist lender, who will offer a market leading 80 per cent mortgage. Under the scheme, a typical buyer would only need to raise a deposit of five per cent of the total price of the property. Hitachi Capital can then arrange a fixed rate unsecured loan of up to 15 per cent of the purchase price to make up the balance of the required deposit.

Jan Ruston, Sales Director at Barratt East Midlands, said: “We know that there is enormous demand for home ownership amongst local people who have good incomes but are currently stuck in rented accommodation.”

“This new offer is tailored to suit their needs. It is an inexpensive way to borrow the deposit required to buy a home. I would urge anyone who is interested to contact us to find out how this ground-breaking new scheme can help them to realise the dream of home ownership.”

Gerald Grimes, Divisional Managing Director at Hitachi Capital, said: “Would be homebuyers have become disheartened with the current housing market because of the large deposits demanded by a lot of lenders. Last year we teamed up with Barratt to offer parents the opportunity to help their children onto the ladder, this year we are opening up this innovative new product to the buyers directly.”

Charles Haresnape, Managing Director of Mortgages at Aldermore Bank, said: “There are thousands of perfectly creditworthy borrowers who are unable to get a foot on the first rung of the housing ladder because of the difficulties of raising a deposit. This new scheme addresses that issue head-on.”

To be eligible to apply for the loans, applicants must be UK residents, aged over 21 and have both a good credit rating and sufficient income to service both the deposit loan and mortgage repayments. The offer is available to all buyers, not just those buying for the first time.

This deal is currently available at all Barratt developments throughout the area which include:

l Hallam Fields, Corporation Road, Ilkeston DE7 4AS – Offering three and four bedroom houses with prices starting from £144,995. The sales office is open Thursday to Monday, 11am to 6pm.

l Saxon Village, Coles Way, Dysart Road, Grantham NG31 7DD – A stylish selection of three bedroom homes. Prices start from £117,995. The sales office is open Thursday to Monday, 11am to 6pm.

l The Grange, Sandlands Way, Forest Town, NG19 0LY – A new development of three bedroom homes priced from £124,995. The sales office is open daily, 11am to 6pm.

l Bridon Place, Ollerton Road, Retford, DN22 7TB – A brand new development of three and four bedroom homes priced from £139,995. The sales office is open Thursday to Monday from 11am to 6pm.

To find out more call the sales hotline on 0844 811 3377 or log on to the website at

Barratt East Midlands was given a five star rating in this year’s HBF Customer Satisfaction Survey, in which consumers are asked if they are satisfied with the quality of their new home and whether they would recommend their builder to a friend.

For added peace of mind, buyers can also benefit from Barratt’s exclusive five year guarantee on fixtures and fittings in their new home at the time of purchase.  Items covered at no extra cost to the buyer will include appliances such as washing machines and refrigerators, kitchen units, wardrobes, the central heating system, fires, doors, windows, drainage, the hot and cold plumbing system and even the driveway.