Every little helps in the property market

New government data out shows just how helpful housing initiatives have been for first-time buyers.
The government’s flagship housing scheme is Help to Buy: Equity Loan. This lets a buyer put down 5% on a new build property and boosts the deposit with an equity loan of up to 20% which is interest-free for the first five years.

Since launch in 2013, 158,883 properties were bought using Help to Buy: Equity Loan, with 81% of purchases by first-time buyers.

More than 1.1m first-time buyers have also opened Help to Buy: ISA savings accounts. The product, launched in 2015, lets first-time buyers save up to £200 each month and earn interest tax-free, while the government provides a 25% bonus – up to a maximum of £3,000, on the interest and contributions once a home purchase is made.

The Help to Buy: ISA can be used to save for a deposit on a first property worth up to £250,000 or £450,000 in London.

The scheme will be open to new savers until 30 November 2019 and account holders can continue saving into their account until 30 November 2029 when accounts will close to additional contributions. The government bonus must be claimed by 1 December 2030.

Separately, 69,000 first-time buyers have already benefited from the Government’s Stamp Duty exemptions announced last year.

The relief lets first-time buyers purchasing homes worth under £500,000 pay no Stamp Duty on the first £300,000.

Help to Buy: Equity Loan is just one way of getting a mortgage.

Get in touch with your financial adviser if you want help with getting on the property ladder.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE