Remember, the “Help to Buy” scheme drops 20% of the purchase price of properties up to £600,000 into developers’ pockets and the government has just put an extra £10 billion into this scheme from other hoysing budgets.
The Help to Buy: Equity Loan can be used to purchase a new build property up to the value of £600,000, with a maximum equity loan of £120,000 (20%). In London, applicants are able to claim an equity loan up to 40% of the purchase price.
“A record number of first time buyers must find at least £500,000 to get a foothold on the housing ladder in London, new research reveals today.
The dramatic surge in property values in the capital over the past decade is forcing young Londoners to raise vast sums that would have been unimaginable to their parents, it shows.
So far this year an unprecedented 25.9 per cent of the homes bought by debut buyers in London have been at or above the half a million pound mark, according to analysis of mortgage lending by agents Savills.
… The data, from trade body Finance UK, also shows that no mortgages at all were advanced to first time buyers for homes in the £125,000 to £175,000 bracket during the third quarter. It was the first time on record that this more affordable segment of the market has dried up altogether. …”