Help to Buy numbers encouraging, but buyers need to think longterm
16 August 2018
If you’re covering the recent figures on Help to Buy please see the following comment from Gemma Harle, managing director of Intrinsic’s mortgage network. Gemma notes that while the numbers are encouraging those who use the scheme need to be conscious of the long term implications.
“More than 420,000 people have now used the government’s Help to Buy scheme, an encouraging figure given the increasing challenge for younger generations looking to get on the housing ladder. The average first time buyer in London had to save 109% more in January than the English average, according to figures from the Office for National Statistics. This is despite London prices growing 2.1% year on year, compared to the English average of 4.4%.
“Those who utilize Help to Buy need to think about the long term implications. Only some lenders accept a remortgage application from Help to Buy borrowers looking to switch from another lender, limiting the options of homeowners looking to reduce their monthly outgoings.
“Having a financial plan in place is crucial and getting professional financial advice and guidance can help the prospective first time buyers think through the options available to them and what these options mean in years to come.”