According to recent figures from the Mortgage Advice Bureau, reported on the Financial Times, the Help to Buy scheme has saved buyers an average of £58,000 on a deposit. Have you, or anyone you know, been given a helping hand by the mortgage guarantee scheme?
The Mortgage Advice Bureau claims that the typical Help to Buy deposit in September was down 3% on August’s average to £8,974.
When compared to an average home price of £226,641, Help to Buy applicants paid the lowest amount recorded in four months in September: £150,488. This is down 6% on August, when the average price paid stood at £159,527.
In terms of loan-to-value (LTV) mortgages taken out by a Help to Buy applicant, this figure stood at 94%, compared to the market average of 70%.
Help to Buy applicants’ average main income was £31,270 in September – the equivalent of £2,018 per month in take-home pay. If they were to save a quarter of their take-home salary each month, it would take one year and four months in order to save the average Help to Buy deposit.
Brian Murphy, head of lending at the Mortgage Advice Bureau, has said that the “generosity” of the 95% LTV associated with the scheme is “clearly not being abused”; lower earners are using it in order to buyer cheaper homes and are taking on much lower levels of debt as a result.
Are you a first-time buyer looking to get onto the property ladder? Perhaps now is the time to take advantage of the Help to Buy scheme?