7000 Help to Buy Applications in 3 Months

7000 Help to Buy Applications in 3 Months.

The Help to Buy Scheme is proving popular among buyers with almost 7,000 borrowers reserving a home using the scheme in the first three months of this year. Housing minister Mark Prisk said there has been 1,000 sales using this scheme since April 1st.

The scheme allows borrows to receive a 20% equity loan, interest free for 5 years, but only on new build properties. Over the next 3 years the scheme is predicted to help 74,000 homebuyers.

Our View

The Help to Buy funding for lending scheme will obviously appeal to those that have little deposit but want to get a foothold on the property ladder as well as those that are looking to move up the ladder but have little or no deposit or equity.

The help to buy scheme funding for lending scheme only applies to new build property and is of course designed to stimulate the construction industry as well as create a property recovery which will help banks saddled with toxic mortgage debt.