The Government has recently announced that the Help to Buy Mortgage Scheme will not continue to operate after the end of the year.
The scheme which was unveiled in 2013, offered first time buyers the opportunity to purchase a home with a Government backed loan worth up to 95 per cent of the value of the property.
Chancellor Philip Hammond stated in a letter to the Bank of England that the scheme, which has been accessible to home buyers since January 2014, will not be extended, with him further commenting that more than 30 commercial lenders are now offering loans outside the scheme, meaning that the "specific purpose" of the scheme has now been "successfully" achieved.
It had been due to close at the end of this year, but experts have called for it to be replaced amid concerns that the market for first time buyers is already going into decline and they could find it even more difficult to get onto the property ladder with small deposits.
Experts have further suggested that the number of mortgage deals available with a five per cent deposit could halve after the Government pulls the scheme. The number of deals currently available has fallen by nearly 15 per cent since March.
The scheme has helped more than 86,000 households, many of them buying lower-value properties, with an average property price of £157,000 compared with the national average of £216,000. Other Help to Buy schemes will continue until 2020, including the five year interest free equity loans for new build homes. The Help to Buy ISA will also continue.
"Whether you are a first time buyer or an experienced purchaser, if you are looking to buy a property, please do not hesitate to get in touch with us here at Frettens where our client enquiries advisers can answer any queries and provide you with a competitive quotation,"advises Solicitor and Head fo the Conveyancing TeamClare Hallett.
Our Conveyancing Team, based in Christchurch, also cover Bournemouth, Poole and the New Forest. For a free initial chat, please call 01202 499255 andClare or a member of the team will be happy to discuss any questions that you may have.
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