Help to Buy mortgages spark massive interest
According to the Mortgage Advice Bureau (MAB), the Help to Buy scheme’s 95% mortgage has seen a scramble from mortgage applicants eager to buy their first home within the next 12 months. Help to Buy is due to finish by the end of 2016 and buyers are keen to take advantage of the low deposit scheme. The MAB’s findings show that a quarter of all mortgage applicants can only afford a 5% deposit.
The findings are backed up by another market leader in Mortgage Services which has reported that 86% of its applicants are first-time buyers with an average age of 31 and an average loan size of just over £145,000. The biggest number of applicants still, however, come from southern and central areas of England.