Interest is high for the Help-to-Buy Scheme

February 10, 2016

Help-to-Buy is the scheme whereby first or next time buyers can purchase a new-build property,  maximum purchase price for elegible properties is at £600.000.

Buyers will be  contributing a 5% deposit from their own funds  while receiving a 40% interest-free government loan for five years, allowing them to take out a mortgage of 55% loan-to-value.

According to Greg Clark, Secretary of State for Communities and Local Government,  in the scheme’s first week 15,000 people registered their interest.

New Homes Director at Mortgage Advice Bureau, Andy Frankish reportedly said:  “The scheme has incredibly generous terms so it is no shock that it is generating a lot of interest.

“It may well be that people are just curious to see what they can get and how much it will cost them.

“If the enquiries do proceed to mortgage finance, homebuyers can only choose from new properties”.

Frankish reportedly said he didn’t expect to see the majority of purchase completions begin to materialise until the end of year as many of the properties people would be looking at would still be under construction.

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Nationwide House Price Index – Thoughts from the Industry

The latest Nationwide House Price Index for July 2025 shows that: House prices increased by 0.6% between June and July of this year. On an annual basis, the average house price increased by 2.4% up from a 2.1% annual rate of growth in June. As a result, the average UK house price now sits at…
Read More →
Breaking News

Nationwide House Index – July 2025

Annual house price growth edges higher in July Annual rate of house price growth increased modestly in July to 2.4%, from 2.1% in June House prices were up 0.6% month on month UK house price to earnings ratio at lowest level in over a decade at c.5.75 Headlines Jul-25 Jun-25 Monthly Index* 540.5 537.4 Monthly…
Read More →
Breaking News

Late payment reforms offer hope for SMEs

The Government has unveiled its Small Business Plan aimed to support SMEs and unlock growth. This plan outlines their intention to tackle late payments, an issue which costs the UK economy £11bn a year and forces 38 businesses to shut down every day. Richard Beresford, Chief Executive of the National Federation of Builders (NFB), said:…
Read More →
Breaking News

Late payment reform is welcome, says FMB

Measures announced as part of the Government’s ‘Small Business Plan’, to tackle late payments and tool theft, futureproof skills, and improve access to finance, are welcome steps to create a more level playing field for small building companies, say the Federation of Master Builders (FMB). Brian Berry, Chief Executive of the FMB commented: “Late payments…
Read More →
Social Housing 2019
Breaking News

Build to Rent sees global surge

Build to Rent Goes Global: New Data Reveals Surge in UK, US, Australia and New Zealand New global data from Inventory Base reveals that Build to Rent (BTR) is no longer a UK phenomenon. n, it’s a rapidly expanding housing model gaining serious traction across New Zealand, Australia, and the United States. Nowhere is this…
Read More →
Breaking News

Number of estates paying IHT jumps 13%

HMRC has released its annual inheritance tax (IHT) stats for the 2022/23 tax year. Headlines include: Number of estates paying inheritance tax rose 13% to 31,500. The average IHT bill fell by 1.4% to £212,000. 0.03% (202) of estates paid 11% of all inheritance tax and 1% of estates paid around 65% of all inheritance…
Read More →