of the Help to Buy scheme designed to help first-time buyers with only a 5%
deposit to put down has now finished, but there are still deals available to
help people with smaller deposits.
mortgage guarantee element of Help to Buy was originally set up to boost 95%
lending. As its name suggests, the scheme provided a government guarantee to
lenders prepared to lend up to 95% of the property value.
guarantee meant that the government would compensate lenders, to help reduce
scheme proved successful, encouraging more lenders to offer mortgages to those
with only a 5% deposit to put down. Some lenders introduced 95% mortgages even
without the guarantee.
impact for first-time buyers has therefore been positive, and has given them
access to a much wider choice of 95% deals, with some major lenders maintaining
the rates they offer even now the scheme has ended.
rates on 95% deals have also fallen, although buyers must meet affordability
criteria to qualify.
manage to save larger deposits will have far more mortgage options available to
them, but broadly it is a healthier market for homebuyers, whatever size
deposit they have.