The second part for the Help to Buy scheme, initially intended for launch in January 2014, is being launched 3 months early, on 7th October 2013, meaning 95% mortgages are going to be available to purchasers of second hand as well as new build properties.

The purchaser needs a deposit of 5%, on homes up to a value of £600,000, as long as it’s not a second or buy-to-let home. The government will underwrite 15% of the debt.

We take a moment to ask Managing Director Ed Mackenzie Smith what his thoughts are on the issue…

“My view is that it’s a good thing. The problem with setting dates in advance is that it often means a head of steam is built up either by people aiming to beat a deadline or by people sitting on the fence. It removes speculation and everyone (whether they agree with the policy or not) knows where they stand. I think that all property should be included; after all not everyone wants (or can) buy new.

There are many people who want to buy, earn good salaries etc. but don’t have the required deposit. This policy should help solve this issue.Ed mackenzie Smith_web

There is quite a lot of comment regarding the lack of supply of entry level property, but this policy may well encourage owners of property to trade up to a larger home, which in turn means that they sell theirs; something the market really needs. Building more homes is of course essential but that of course take years and any effect not likely to be fully realised for a long time.

So it’s not perfect but overall I’d say it is good news for buyers and sellers too.”

Click here to visit Mackenzie Smith’s page on Help to Buy