Last week the new Chancellor Philip Hammond announced that one part of the two part Help to Buy scheme introduced in 2013 would finish later this year. The scheme was originally introduced to aid first time buyers in purchasing their first home with as little as a 5% deposit, with the remaining 20% guaranteed by the Government. However if you if you are still looking to purchase a property using this arrangement you still have time as it doesn’t stop until the end of this year. The other part of the Help to Buy scheme which enables buyers to purchase a new property will continue until 2020.
Since the scheme was introduced we have seen lenders offering first time buyers much lower 5% LTV, Loan to Value deposits. Mark Carney, Governor of the Bank of England has also reduced interest rates to an all time low of 0.25%, this combined with lower deposits and low rate, fixed-term mortgages has meant that first time buyers are in a better position to buy a property than they have been for years. Since the referendum to leave the EU we have also seen prices stabilising as well as more properties coming onto the market place, which in turn has increased choice and negotiating power for first time buyers.
If you are looking at buying a property and would like to find out more about the Help to Buy scheme why not pop into your local office of Goodfellows or call our team on 020 8946 6511.