The Help to Buy scheme is assisting 75 borrowers a day in their hunt for a new home, the first official figures reveal.
In total, more than 2,000 borrowers have put in offers on homes under the Help to Buy scheme, which helps those with a deposit of as little as 5 per cent.
So far, 10 of the 2,384 mortgage applications have completed, meaning borrowers have already moved into their homes, according to the figures published by the Government.
It means a total of £365m in new mortgage lending, with the average loan being £155,000 for houses worth £163,000. All of the applications have been via RBS and Lloyds.
More than three quarters of the applicants are first time buyers and many are in their early thirties, according to the statistics issued by the Government department Communities and Local Government.
Prime Minister David Cameron said: “Four weeks in and it’s clear that Help to Buy is already delivering. 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.
“But the best thing about Help to Buy isn’t the statistics – it’s who is really benefiting. Most Help to Buy applicants are first-time buyers, young and have a roughly average household income. This is all about helping hardworking people get on the first rung of the property ladder – and helping them get on in life.
“Owning a home is about more than four walls to sleep at night. It’s about independence, self-reliance, moving on and moving up. Above all, it’s about aspiration. Help to Buy is helping people realise the dream of home ownership – and it’s a key part of my plan for Britain.”
The Government suggested applicants face average monthly repayments of around £900 and have an annual household income of around £45,000, meaning a Help to Buy mortgage represents 24 per cent of borrowers’ gross income.
It said applications were from across the country with more than three quarters coming from outside London and the South East.
The Help to Buy mortgage guarantee scheme offers lenders the option to purchase a Government guarantee on mortgages on both new build and existing homes, where a borrower has a deposit of between 5 per cent and 20 per cent.
High Street banks including Natwest, RBS, Halifax (part of the Lloyds Banking Group) and Bank of Scotland have already started offering mortgages supported by the Help to Buy mortgage guarantee scheme. HSBC, Barclays, Santander, Virgin Money and Aldermore have also confirmed they will join the scheme in the coming months.
Earlier this year, the Government launched the Help to Buy equity loan scheme, available to those who aspire to own a new build home, but struggle to access or afford the repayments on a low deposit mortgage. Under the scheme, the Government provides an equity loan worth up to 20 per cent of the value of a new build home, interest free for the first five years, to be repaid on sale or when the mortgage is repaid. The maximum home value is £600,000, and the scheme is open to first-time buyers as well as to those looking to move up the housing ladder.
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