Figures released from the treasury reveal the impact of the Governments second Help to buy phase on first time buyers.
The second phase of Help to Buy is the Government initiative that is designed to help those looking to get onto the property ladder by providing guarantees for high loan to value mortgages. With Help to Buy 2 Purchasers can apply for a 95% mortgage on properties priced up to £600,000.
First time buyers are the ones to benefit the most out of the scheme as they make more than three quarters of the completed mortgages, with 23,000 out of the 30,269 completed mortgages.
The overall value of loans the Government has supported is £4.5bn but the Treasury said “no claims on the guarantee have yet been made” – but it is early days for the scheme.
Between October 2013 and September 2014, more than 40% of the approved loans were for purchases below £125,000.