A survey carried out by Mortgage Advice Bureau (MAB) showed that this group of homebuyers bucked the trend of the wider market purchase market where borrowers’ salaries remained static.
It meant the average Help to Buy 2 homebuyer’s primary salary in December was £12,000 lower than the purchase market average.
Head of lending at MAB Brian Murphy (pictured) said this dip in income was encouraging news for first-time buyers.
“It is reassuring to see that people with more modest salaries can still access the housing market without needing to command high salaries or have saved a large deposit.”
But the squeeze on lower income homeowners was eased by a 4% drop in the average price of a home bought under the scheme between September and December bringing the average price down to £143,727.
Of the 5m working adults who fall within the 30 to 39 age range 38% earn at least the average salary of £27,957 matching those borrowers typically using the mortgage guarantee scheme. This compared to 19% whose income matched the wider purchase market.
“It is important to remember that these borrowers are still subject to rigorous affordability tests, which ensures that their household finances are secure enough to manage their repayments even when interest rates rise,” said Murphy.
