Government Help
Almost 90,000 take advantage of Help to Buy
Almost 90,000 people have used the government’s Help to Buy schemes to purchase a new home, new figures show.
The two schemes – the mortgage guarantee and equity loan – were launched to help those with small deposits onto the property ladder.
Some 80% of the completions have been made by first-time buyers with the average sale price being £185,000, below the national average house price.
This figure can be broken down into an average of £156,000 for the mortgage guarantee and £212,000 for the equity loan scheme.
The vast majority of the sales were outside of London with just 6% of homes sold in the capital city. The North West proved the most popular region for the mortgage guarantee scheme.
Prime Minister David Cameron said: “Thanks to Help to Buy, this government has helped thousands of hardworking people that otherwise would have been locked out of home ownership get the keys to their own home and enjoy the security that comes with it.
“This is all part of our long-term economic plan to secure a better future for Britain – and, together with cutting income tax, lowering council tax bills and freezing fuel duty, the government is backing those who work hard and get on find the financial security they deserve.”
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Since their arrival, the Help to Buy mortgage guarantee and equity loan schemes have helped more than 80,000 consumers to buy their first home, with the vast majority being cash-strapped first-time buyers.
“The schemes have also been instrumental in normalising high loan-to-value (LTV) lending, which was very much a standard part of a healthy mortgage market before the financial crisis.
“Even those lenders who don’t participate in the scheme have cottoned on to the fact that the market needs more affordable options for those climbing onto the property ladder for the first time.
“However, the Help to Buy mortgage guarantee scheme still accounts for a sizeable chunk of 95% products currently available on the market. There are concerns from both brokers and lenders that first-time buyers will suffer from a lack of high LTV options once the scheme is wound down next year.”
