Q. Since the introduction by the government of the Help to Buy Scheme last year is there evidence that the scheme is really working and actually helping buyers that were previously unable to secure a home of their own? I’m considering this as an option but would like some more facts on whether the scheme actually is working or not?
A. Over 6,000 people have put offers on a home and applied for a mortgage since the start of the Help to Buy scheme, driving further expansion within the UK mortgage market. These new mortgages will signify new lending of nearly £1 billion to those who previously found their home buying ambitions to be out of reach, due to the cost of deposits, and has instigated further expansion within the UK mortgage market, with Santander and Barclays set to introduce Help to Buy products too. The Post Office has also announced it soon will join the scheme, offering mortgages from its partner Bank of Ireland. The lenders currently offering the mortgage guarantee scheme include Lloyds Bank, NatWest, Halifax, Bank of Scotland, HSBC, Virgin Money and Aldermore. This means that a remarkable two thirds of the UK mortgage market will now offer products under the Scheme, giving aspiring home owners a range of options in 2014 – important as January is the popular time for a fresh start somewhere new.
Prime Minister David Cameron made this comment recently when talking about the scheme:
“Too many people have found themselves frozen out of the market in recent years. That is why we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home.
“In less than three months, the scheme has already helped thousands of people. I want to see that continue in 2014 and for Help to Buy to help thousands more realise their dream of home ownership”.
So the scheme is clearly a success so far and with so many lenders now on board it appears to be going from strength to strength. Clearly the buoyancy of the current sales market is also a strong indication that there are more buyers in the market to buy than has been for some time now which is obviously a result of buyers taking advantage of the scheme.