Help To Buy: 80% Go To First Time Buyers

Written By Unknown on Kamis, 29 Mei 2014 | 16.12

A total of 80% of the Help To Buy mortgage scheme loans granted in its first six months were given to first time buyers.

The Treasury said a total of 7,313 loans were issued, with a total value of £1bn.

The average value of each loan taken out under the controversial scheme was £136,742.

The figure shows that only about 1% of all mortgages taken out in the period were helped by the scheme, undermining critics of the programme who have said it is prompting a house price bubble.

Most mortgage completions through the scheme were completed on properties outside London and in regions where prices are lower.

A high proportion of homes supported by the scheme were in the North West and the East of England.

The mean value of a property purchased or remortgaged through the scheme is £151,597, compared to a national average house price of  £252,000.

A total of 38% of loans were for terraced houses.

The scheme's rollout in October saw only four completions done, followed by 164 in November and 818 in December.

That monthly figure jumped significantly in the first three months of this year.

In January, completions reached 1,580, while in February it hit 2,090, and 2,657 in March.

Only 5% - a total of 385 completions - were made on properties in the capital.

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