Help to Buy puts spring in housing market's step
Wednesday, 10 April 2013 - Kevin Belsham
After one of the coldest Springs on record, the Chancellor’s budget announcement of the Help to Buy scheme is as welcome as the first glimmers of April sunshine. We know that our customers have found it particularly hard to raise a large enough deposit to buy their first home or move from their existing property. We've seen some positive signs of improvement in the housing market and Help to Buy will make all the difference to those who thought home ownership was out of their reach.
The proposed Help To Buy scheme measures include an equity loan scheme available on new build properties up to the value of £600,000. There’s no salary cap for purchasers and it’s available to both first time buyers and existing home owners alike. Eligible purchasers will receive a Government loan of 20%, which means that they only need to put down a 5% deposit and obtain a 75% loan-to-value mortgage.
It all sounds great – but it is still early days and the scheme is still evolving. Its success will in part depend on support from lenders offering the right products with competitive interest rates. That said, the initial signs are very hopeful; new lenders are starting to come on board and we’re really pleased with the level of interest in Help to Buy from our customers so far.
For existing homeowners there’s even more good news. We’re delighted to announce that we can now offer Help to Buy in conjunction with our EasyMover scheme which helps you to sell your current property.
We want to spread the word that buying a home with a low deposit is possible right now. Our Help to Buy scheme webpage gives helpful advice, along with some FAQs and a short video guide.