The success of “Help to Buy”
One of the great success stories that the coalition government can take credit for, as far as first time buyers wanting to get onto the housing ladder is concerned, is the help to buy scheme. So far 40,000 people have been helped by the scheme, most of which have been first time buyers, the figures are believed to be around 78% Of those that have had help, the total figure is thought to be £5.9 billion, with the value of the property which has been purchased, or in some cases re-mortgaged £156,031, which compares favourably with the nation house price being £272,000.
What the figures also show us is that the area’s that have benefited from the scheme include the North West and the East, with a lower proportion being attributed to the London and South East regions.
The scheme which was launched in 2013 works by government offering lenders the option to purchase a guarantee on mortgage loans, in the cases where the people borrowing can put down a deposit of 5% to 20%. The scheme is designed to help people get mortgages on new build homes or for existing homes, specifically aimed at first time buyers, but also home movers and those re-mortgaging, but specifically excluding “Buy to Let” mortgages and for those purchasing a second home.
The scheme has had a dramatic effect on the bank of mum and dad, which has seen a drop, not in all cases though as figures show that first time buyers in the Yorkshire region had help from that source in 27% of cases compared with 57% in the South West.