Help to Buy confuses some first time buyers

Help to Buy confuses some first time buyers

The UK government's new Help to Buy scheme has created confusion among first time buyers, according to an independent survey supported by the Building Societies Association (BSA).

People looking to buy or move house believe that the benefits of the mortgage guarantee scheme are some what unclear, with 43 per cent of respondents uncertain as to how it would help them specifically.

A further 31 per cent of respondents said they did not know the difference between a mortgage provider who was a part of the scheme and one that wasn't.

The scheme has certainly encouraged people to visit their estate agents, as the amount of new buyers continue to rise within the property market. However, new buyers may be looking to use the scheme for the wrong reasons.

Some of the common misconceptions regarding the scheme were that it would allow buyers to borrow more and that repayments would be lower.

Help to Buy is designed to encourage people who want to purchase their first home through smaller deposits from mortgage lenders.

“It is essential that providers offering loans under the scheme leave applicants in no doubt about the terms of their mortgage loan,” said Paul Broadhead, BSA head of mortgage policy.

 

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