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 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.”