12 Mar

Help to Buy mortgage boosts property market

Help to Buy mortgage boosts property market

The government's Help to Buy initiative has helped more than 40,000 people step on to the property ladder, according to the latest figures.

First-time buyers have benefitted the most from the scheme, with the majority of loans going to new homeowners. Of the 40,079 deals made under the Help to Buy project, a total of 78 per cent have involved first-time buyers.

Overall, the total value of mortgages backed by the scheme is £5.9 billion and the average value of a property purchased or remortgaged through the initiative is £156,031 - compared to a national average house price of £272,000.

Since being launched in October 2013, the regions supported most by the scheme are the North West and the East, with a lower proportion of purchases made in London and the South West.

Help to Buy allows lenders to purchase a government guarantee on mortgage loans, where the applicant has a deposit of between five and 20 per cent. Both new homes and existing homes are covered by the scheme, although it is not available on buy-to-let or second home purchases.

Clydesdale and Yorkshire Banks’ latest yearly first -time buyer survey revealed 46 per cent of the UK's first-time homeowners needed help saving for a deposit in 2014, compared with 63 per cent in the previous year and 78 per cent in 2012.

"It has been very encouraging to see the recovery of the property market with lending to first[-]time buyers at the highest level for seven years. It is also positive that the number of first-time buyers relying on the Bank of Mum and Dad to get on the property ladder has decreased significantly," said Steve Fletcher, head of Clydesdale and Yorkshire Banks Retail Network.

"This reflects the increased availability of first-time buyer mortgages with a low deposit as well as growing economic confidence, particularly among house buyers," he added.ADNFCR-1222-ID-801779339-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.