The final deadline for Help to Buy applications is 6pm on 31 October and according to government figures, the scheme has supported the sale of 360,000 new-build homes since it launched in 2013.
While alternatives set up by private companies have since been launched to help first-time buyers and those unable to access sufficient mortgage loans, there is no clear replacement for the scheme. Furthermore, some of the companies offering alternatives do not lend on new-build properties.
In response, Legal and General Mortgage Club is holding a New Build Forum today to give the industry the chance to discuss current replacement options in the market and the economic climate.
‘Step up to support new build’
Danny Belton (pictured), head of lender relationships at Legal and General Mortgage Club, said: “Although the end of Help to Buy has been widely publicised, the wind-down of the scheme has left many potential borrowers confused about what their options are for the future. In order to best support these customers, advisers must have clarity from the mortgage industry on what comes next and currently there is no clear successor to Help to Buy.
“This is an opportunity for mortgage lenders to work together to shape the future of our industry and step up to support the new-build sector.”
He added: “We want to hear from everyone in the industry about how we can continue to support borrowers in the future after the end of Help to Buy, but also how we can ensure that this future is green and sustainable. Building more green homes and helping borrowers own these homes with more green mortgages will require us all to work together.
“As the government has taken a step back, now is the time for the industry to take responsibility for supporting borrowers and pushing the new-build sector forwards.”
