Recent figures released by the HM Treasury show approximately 94,000 people have secured a new property with the aid of Help to Buy (HTB) since its launch in April 2013. It is understood that 80% of these completions were accounted for by first time buyers.
These numbers include sales via the equity loan scheme as well as the mortgage guarantee scheme. It was revealed that the average purchase price of a home through the scheme stood at £184,000, which is considerably less when compared to the average house price of £273,000. This demonstrates the support is reaching those who require it, helping them fulfil their ambitions of becoming homeowners.
Further to this, examining the Help to Buy mortgage guarantee (H2B) element, there is equally good news to be had. Homes purchased using the guarantee totalled 46,877, since its inception in October 2013, where 78% of completions were made by first time buyers.
Of the mortgages helped by the guarantee, 20,046 (43%) accounted for properties valued under £125,000, and 37,461 (83%) were valued below £200,000. The average value of a home bought or remortgaged through the H2B scheme was £155,603, in stark contrast to the national average house price of £273,000.
HTB: Mortgage Guarantee completions by property value, October 2013 – March 2015
|£0 – £125,000||£125,001 – £150,000||£150,001 – £200,000||£200,001 – £250,000||£250,001 – £350,000||£350,001 – £500,000||£500,001 – £600,000|
|October 2013 – March 2015||20,046||7,094||10,321||5,631||2,576||1,063||146|
Source: HMT Notes: Total HTB: Mortgage Guarantee completions (October 2013 – March 2015) CML Economics 4/6/2015
The mortgage guarantee scheme is expected to come to an end at some point next year, but there is still plenty of time to save a 5% deposit. It is important to seek impartial mortgage advice to help you find the right kind of mortgage to suit your financial circumstances, as well as finding out which mortgage scheme is best for you.