Nearly £1bn of loans provided through Help to Buy, figures show

Out-Law News | 06 Jan 2014 | 2:08 pm | 1 min. read

Three months into the second phase of the Government's Help to Buy scheme, nearly £1 billion worth of lending and support has been provided under the mortgage guarantee scheme, the Department for Communities and Local Government (DCLG) has announced. 

The DCLG said that, since the launch of the scheme in October, more than 6,000 people have put in offers for a home and applied for a mortgage through Help to Buy. Nearly 750 of those have completed the purchase of a home.

The Scheme allows both existing and first time buyers with deposits as small as 5% to buy homes worth up to £600,000 and the Government then guarantees the next 15% of the property's value.  It is designed to encourage banks and building societies to offer more mortgages to young people who only have a small deposit.

With a number of lenders having introduced or planning to introduce Help to Buy products this month, more than two thirds of the UK's mortgage market will offer products under the scheme, the DCLG added.

"The New Year is often a time when people look to make those big life-changing decisions like moving home or taking that first step on the housing ladder," said Prime Minister David Cameron. "But too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required."

"That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home."

"In less than 3 months, the scheme has already helped thousands of people. I want to see that continue in 2014 and for Help to Buy to help thousands more realise their dream of home ownership," Cameron said.