According to recent figures, more than 2,000 people have put in offers on homes under the Help to Buy scheme, totalling £365 million of new mortgage lending.
Applications are backed by a ‘decision in principle’ by RBS and Lloyds, the first 2 participating banks, for 95 per cent mortgages. Ten of the 2,384 applications have already completed.
The figures demonstrate that government-backed Help to Buy scheme is supporting responsible lending. On average households have asked to borrow around £155,000 for houses worth about £163,000, which is below the UK average price of £247,000.
More than three quarters of applicants are first-time buyers and many are in their early thirties, demonstrating that the scheme is helping hardworking people realise their home-owning aspirations.
The Prime Minister David Cameron said:”4 weeks in and it’s clear that Help to Buy is already delivering. In just 1 month, over 2,000 people have been accepted for a Help to Buy mortgage. Or, put another way, 75 families every single day have been put on the path to owning their dream home.
But the best thing about Help to Buy isn’t the statistics – it’s who is really benefiting. Most Help to Buy applicants are first-time buyers, who are often young and have a roughly average household income. This is all about helping hardworking people get on the first rung of the property ladder – and helping them get on in life.
Owning a home is about more than 4 walls to sleep in at night. It’s about independence, self-reliance, moving on and moving up. Above all, it’s about aspiration. Help to Buy is helping people realise the dream of home ownership – and it’s a key part of my plan for Britain.”
Since it was introduced, the Help to Buy scheme has seen applications for 95 per cent mortgages massively increase the size of the market – giving first-time buyers the same kind of opportunities to buy their own homes as their parents and grandparents had. A 95 per cent mortgage has been the route to ownership for most first-time buyers over the last 30 years.
At Palmers, our residential conveyancing department includes solicitors with a wealth of knowledge, who are dedicated to providing support to individuals on all aspects of conveyancing including the purchase and sale of property, including first time buyers. We have specific experience in dealing with the Help to Buy Scheme and have acted and completed on a number of matters where clients have used the Help to Buy scheme.