Property boost from `Help To Buy? scheme
Sun 06 Oct 2013
It will offer state-backed mortgages, allowing buyers to get their dream home with just five per cent deposit.
That will amount to under 10,000 in six out of 10 regions across the North, the Midlands and Wales, property
website Zoopla found. With an average asking price now at 222,168, it said a typical five per cent deposit would
be 11,108.The website said the new phase of the scheme which applies to properties under 600,000 could knock
22billion off deposit needs.At 16,103, London buyers will still need most cash, but house hunters in Yorkshire will
need just 8,129 in hand.Peter Rollings, of estate agent Marsh & Parsons, said it would act like a shot of adrenalin
for the market.RSB to take part in Help to Buy scheme[GETTY] Studies suggest that Help To Buy will ramp up
demand Studies suggest that Help To Buy will ramp up demand, prompting critics to warn it could cause a price
Experts say lenders will still impose tough borrowing rules and interest rates may be set at six per cent. That
means a 200,000 mortgage would cost 1,316 a month.RBS, Lloyds and Halifax are taking part but other lenders
want more details.
The scheme will run until 2017, providing 12billion of guarantees which will unlock 130billion of lending.