Since its official launch over 4 weeks ago, there has been much discussion about the government’s new Help to Buy scheme. It has been met with both praise and scorn by experts, but Prime Minister David Cameron is apparently delighted with the take-up that they scheme has generated.
More than 2,000 people have signed up to the scheme, resulting in £365 million of new mortgages. Participating banks RBS and Lloyds have backed up all these applications, in principle, and 10 applications have already been completed.
On average, loans of £155,000 have been made for houses worth about £163,000, a figure that is well below the UK average. And it’s proven to be popular amongst first time buyers and young people in their early 30s.
Helping 75 Families A Day
The Prime Minister is pleased with the take up of the scheme, and told UK Housing News “In just one month, over 2,000 people have been accepted for a Help to Buy mortgage. Or put another way, 75 families every single day have been put on the path to owning their dream home.”
Mr. Cameron said the scheme was “all about helping hardworking people get on the first rung of the property ladder – and helping them to get on in life.”
“Key For Britain”
Supporters of the scheme have praised it for setting an aspirational target that young people can achieve, an opinion that was echoed by the Prime Minister. He said, “Help to Buy is helping people realise the dream of home ownership – and it’s a key part of my plan for Britain.”
It’s believed that applicants will have to pay back around £900 a month, and have an annual household income of £45,000.
And the scheme has helped to make the mortgages on houses under Help to Buy, £2,557 cheaper per year, if compared to the equivalent mortgage from 2007.
As a result of the Help to Buy Scheme, claims UK Housing News, the size of the housing market has increased, as more and more first-time buyers are given the same opportunity as their parents and grandparents had.
More To Sign Up In Coming Weeks
And it appears that the scheme is going to continue going from strength to strength. Already 65% of the UK mortgage market has signed up to Help to Buy, and more mortgage products are expected to sign up in the coming weeks. HSBC, Barclays, Santander, Virgin Money and Aldermore are all planning to sign up to the scheme.