The second phase of the Government’s Help to Buy scheme is benefiting first-time buyers, says Harborough estate agency Connells.
Almost 90 per cent of the mortgages that Connells’ mortgage consultants have arranged using the new phase of the scheme have been for first-time buyers, according to the agent.
Since the extension of Help to Buy to cover most types of property at the beginning of October, a high proportion of buyers using the scheme have been getting on the property ladder for the first time, with the average age of buyer coming in at 31-years-old.
Nortgage services consultant Julie Pratt from Connells in Market Harborough said: “Our nationwide figures show that first-time buyers are really getting the benefit of Help to Buy which is great news.
“As the housing market continues to recover, nothing can be more important than helping prospective buyers with that first step into home ownership.
“This isn’t just good for them but the whole market as it has a ripple effect for home-movers who wish to sell their homes and move on.”
The second phase of Help to Buy offers a mortgage guarantee to the lender of 15 per cent of the property’s value, provided they meet the criteria of the scheme and mortgage lender.
It means buyers can purchase a new or previously-owned home with a five per cent deposit.
Connells says the scheme is designed to overcome what has been the single biggest stumbling block for first-time buyers in recent years, that of saving a huge deposit to buy a home.
“Interestingly, it is also having an impact in terms of allowing buyers to purchase a slightly bigger home than they might have done without the scheme,” Julie added.
“If we consider the changing demographic of first-time buyers and the average age being 31, they may be looking for a slightly larger family home so its great that Help to Buy can enable this type of purchase rather than having to take many small steps up the property ladder.”
Earlier this month, Leicestershire County Council said 230 first-time buyers had been helped on the ladder by its similar Lend a Hand scheme.
To find out more about Help to Buy, call Connells on 01858 465921 or email email@example.com.
Story by Alex Blackwell
Follow Alex on Twitter, @BlackwellHarb.