The government scheme consists of two parts: The Help to Buy Equity Loan enables people to buy a newly-built home with a deposit of at least 5% of the property price, while the government offers a loan of up to 20%. The rest is covered by a mortgage.
Meanwhile, the Mortgage Guarantee offers mortgage lenders the option to purchase a guarantee on mortgages where a borrower has a deposit of between 5% and 20%. Because of this support, participating lenders are able to offer more mortgage products to borrowers with small deposits.
The scheme has become increasingly popular, with the vast majority of people buying homes outside London and the South East. Indeed, 17,395 people have already bought a home through Help to Buy, with over 80 per cent of sales made up of first time buyers.
The figures also reveal how Help to Buy is benefiting every region of the country. The highest number of people buying a home through the Mortgage Guarantee is in the Scotland and Northwest, while the Equity Loan – the scheme for new-build properties, helping to stimulate house building – at its highest in the South East.
Help to Buy continues to support responsible lending, with the …read more
Source: The Movechannel