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Help to Buy an ‘unqualified success’

Help to Buy an ‘unqualified success’

Category: Mortgages

Updated: 10/09/2013
First Published: 10/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Help to Buy reservations had climbed to 12,500 by the end of August – five months after its launch on 1 April.

The figures have led the country's leading house builders to laud the latest Government initiative to boost the mortgage and housing markets an "unqualified success".

The first phase of Help to Buy aims to help aspiring homeowners with only a 5% deposit secure a mortgage on a new-build property. The Government will then provide an equity loan of up to 20% of the property's value.

It is hoped that the equity loan part of the scheme will help 74,000 aspiring homeowners over its three-year lifespan.

The second phase of Help to Buy is due to be launched in January. This part of the scheme is available on both new-build and existing properties and works by the Government guaranteeing a portion of lender losses from repossessions on 95% loan-to-value mortgages.

Commenting on the latest figures, Jeff Fairburn, group chief executive of Persimmon, said: "If this early interest is maintained, the Help to Buy scheme will play an important role in enabling the industry to increase the volume of new homes built over the coming months and years."

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