We are in similar situation and similar finances - we were told we could borrow around 315 , and had a 10% deposit for a house around this price, but with fees that would have wiped out our savings, and we're due our 2nd in June so need some extra for mat leave or i'll only be having 3 weeks off!
Basically we found some lovely new builds - they're a little further out than was our first choice, but in a lovely market town in the south west, good schools, and we are gtting a big four bed. We only have to borrow 300k cos of help to buy, and it frees up a LOT of our savings as only putting down 5%. This helps with furnishing etc, plus means its not beans on toast for 5 years lol.
The houses from the first phases have already shot up by 10% and everyone i know who bought new bulds in the last 2 yrs says there are some re-selling already on their estates at 10-20% higher!
We figure as a big 4 bed its much longer term, so we'll get a 30 yr mortgage and if we have to remortgage full amount in 5 yrs to pay government back so be it, as we will be there a while!
Pros - smaller deposit, better rates as 75% LTV and lower mortgage
Bigger house due to the above
Nice and new - all guaranteed for 10 years
Cost effective with heating etc because of modern builds
lots of deals to be had on extras etc (as we're finding out) so don't be put off by them, work through them.
New build HTB estates tends to attract FTB and young families (like us!) so hopefully will be family feel estate
Cons - less character in new builds and no decorating for a year!
bigger estates will always hhave 40-50% affordable housing - not always a con - i realise that sounds snobby - but worth considering.
you don't know what your neighbours are going to be like!
buying off-plan is scary (but you can choose your house.)
There is the argument that new builds are a bit over priced because of HTB so you won't make your 20% back very quickly - but that's not what i've heard from those on New build estates
You will have snags in a new build - but then you will have hidden issues in an established hous
Do check out the show home properly and try to have a proper look around the estate. One development i went on i went in the show house - a small 3 bed town house - and you could hear next doors tv - and they wanted 375 - ouch!
Also remember that although the show homes look sooo seductive the house will come with literally nothing - flooring / carpets / turf all exta.
Does that help at all? We're so excited to be putting deposit down on Friday but also slightly terrified !