Help to Buy Scheme Gives 2000 House Buyers the Chance to Buy a New Home
According to early figures and statement from the UK Prime Minister, the Help to Buy scheme is proving popular with homebuyers.
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December 12, 2013 (FPRC) -- David Cameron, the UK Prime Minister, said in a statement that 2000 house buyers had already used the scheme to make offers on homes using the Help to Buy mortgage guarantee scheme. The mortgage guarantee scheme is the second phase of the Help to Buy scheme and was launched in October, two months earlier than expected.
Offers are being made on properties with an average value of £163,000 and the funding from the scheme is helping many young first-time buyers earning average incomes to get onto the property ladder and buy a new home. Over 75% of applications for the scheme are from first-time buyers with many people aged 30 and over. On average, people are borrowing £155,000 and the current mortgage lending is worth £365 million.
Sixty five per cent of mortgage lenders have signed up to the scheme including the Government –backed Royal Bank of Scotland (RBS) who own NatWest and HBOS. Other mortgage providers include HSBC and Santander who will be launching further mortgage products in the near future.
Over 75% of applications have come from outside of the London and South East regions and is so far allaying fears that the scheme would cause a housing price bubble in certain parts of the UK.
Fleur Rowan, What House?, said, 'This is good news and the rapid take-up after the second phase launch is encouraging. The number of house buyers who are applying through the scheme shows that many people and families want to own their own home for the first time or move to a larger home to improve their lifestyle.'
The scheme enables people to buy homes worth up to £600,000 with a 5% deposit as the government will guarantee 15% of the mortgage. The first part of Help to Buy was available on new build homes only to first-time buyers and existing homeowners buying a new build home; however the second phase is extended to resale properties. The first phase was based on an equity loan and the house buyer contributing at least a 5% deposit. The scheme offers a loan for up to 20% of the property price and a mortgage of up to 75% is taken out to cover the rest of the mortgage lending.
Notes to Editors:
What House? is a leading property website that features thousands of new homes across the UK. It also provides the latest property news, valuation of homes and property and mortgage advice. Over the last 32 years What House? has held their annual What House? Awards, which are the longest established New Homes awards in the UK recognising UK house builders and developers across 21 categories.
Send an email to Sonya Bruce of http://www.whathouse.co.uk
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