The Help-to-Buy scheme introduced by the government in April 2015 has seen a 60% increase in the number of first-time home buyers on average throughout the country. This cannot be said for the London area however, where a one-bedroom flat which is priced at £360,000 and up has lenders requiring an income of over £85,000 to support the mortgage required for it. It is hoped that the introduction of a 40% interest-free loan will make mortages more affordable for young buyers in the city.
Key Takeaways:
- Buyers in the capital who want to purchase a new build property received a boost from the Autumn Statement
- The scheme, which is available to those buying a new build property in the capital, will provide buyers who have a 5pc deposit with a loan of up to 40pc of the value of the home, interest-free for five years.
- It has been developed in recognition of the higher cost of housing in London than in other parts of the UK.
“‘The scheme allows people taking their first step onto the property ladder to borrow up to 40pc of the value of a new build home from the Government, interest-free, for the first five years.'”