Have you benefited from Help to Buy? According to the latest update from HM Treasury, almost 94,000 people have bought a new home with the support of the scheme since its inception in April 2013, with the vast majority being first-time buyers who are finally able to realise their dream of homeownership.
The figures comprise sales through both the equity loan and mortgage guarantee elements of the scheme, and show that 80% of all completions have been made by first-time buyers. The average purchase price of a home bought through the scheme stands at £184,000, significantly lower than the national average house price (according to Government figures) of £273,000, suggesting that the support continues to go where it's needed.
This is further evident when looking at the location of Help to Buy purchases, with 95% being outside London. Fears that the scheme could be unfairly utilised by those who don't technically need support have so far proved unfounded, as have concerns over it encouraging house price inflation – not only is the average price of a Help to Buy purchase well below the national average, but mortgage completions through the scheme account for just 3% of total lending activity.
The figures are equally as encouraging when looking specifically at the Help to Buy mortgage guarantee (H2B) element. A total of 46,877 homes have been bought using the guarantee since this part of the scheme was launched in October 2013, and of those, 78% were purchases by first-time buyers.
The mean value of a property purchased or remortgaged through this part of the scheme stands at just £155,603, lower still than the national average, with the vast majority (80%) of H2B mortgage completions being for homes valued at £200,000 or less.
Again, the scheme is supporting a far lower proportion of mortgages in the capital, with buyers in the North West and the East benefiting most. Most completions (74%) have been for terraced or semi-detached properties, and overall, the total value of mortgages supported by H2B so far stands at £6.9bn.
The equity loan element of the scheme has been extended to 2020, which means prospective home buyers have plenty of time to save that 5% deposit and get their foot on the ladder. The mortgage guarantee element is due to come to an end next year, but there's still time – if you want to make the most of it and see the kind of mortgages available, check out our pick of the top H2B mortgages to see if you can realise your dream of homeownership.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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