You are here: Home - News -

Over 130,000 homes bought using Help to Buy schemes

by:
  • 09/12/2015
  • 0
Over 130,000 homes bought using Help to Buy schemes
Over 130,000 homes have been bought using the Help to Buy: Equity loan and Mortgage Guarantee schemes since 2013.

The Help to Buy: Equity loan – which allows qualifying borrowers to apply for a 20% equity loan from the government to buy a new build home – saw 62,569 completions totalling almost £2.7bn in the past two and a half years.

However, the amount of completions dropped by 33% between the second and third quarters of this year, falling from 9,122 to 6,105 completions.

The value of the equity loans also decreased significantly, from £419m in Q2 to £286m in Q3.

The mean purchase price was £218,000 – far below the UK average of £286,000.

The Help to Buy: Mortgage Guarantee – which allows lenders to purchase a guarantee on a borrower’s mortgage – saw a reverse trend.

While the quarter-on-quarter increase in completions was modest – rising from 9,562 to 9,589, the value of the Mortgage Guarantee used rose fairly significantly, from £201m in Q2 to £215m in Q3.

The scheme supports 65,920 mortgages at a total value of £9.7bn, with 79% of applicants purchasing their first home. The mean property value was £155,573.

Both schemes saw a majority of completions from applicants with an annual household income of £30,000 to £40,000.

The Help to Buy: Equity loan will run until 26 November 2021 and the Mortgage Guarantee until 31 December 2016. In Scotland and Wales, the end date for both schemes is set at 31 March 2016.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
View of St Pauls catherdral
Why we should tailor lending to the London housing market – Marketwatch

It is often said that London is like a separate state, independent of the rest of the UK. At a...

Close