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Help to Buy Going Strong

Written By On 02/01/2014

David Cameron announced that if all ongoing mortgages get accepted, the Help to Buy scheme will be approaching one billion pounds worth of funding for loans since it first came into operation.

The prime minister professed that it will be responsible for helping over six thousand people to realise their dreams of getting enough money to buy their new property.

The Government's flagship scheme was introduced across England a few months ago. Wales are launching their particular variation of it today on the back of that.

Recently a few economy experts and politicians have been concerned that it may be a catalyst for causing a house pricing bubble, but Bank of England governor Mark Carney feels that this would not materialise.

Mr Cameron spoke of buying a property for most as a 'big life changing decision'. He said:

Too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required.

The prime minister went on to say,

We introduced the Help to Buy scheme, so hard working people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home.

The scheme allows the buyer to borrow up to as much as ninety five per cent. With such a small deposit required, questions are being asked by many as to what issues this might create.

Downing Street have no such worries as they appear satisfied with all the data they have received. They believe that the Help to Buy has only supported lenders to be 'more responsible'.

They say that the standard mortgage loan applicant using the scheme pays back amounts of less than a quarter of their annual salaries.

They also claim that the majority of people within the scheme buy a home for well under Britain's average price of £247,000.