More and more househunters in the Cotswolds are turning to the government-backed Help to Buy mortgage support scheme, according to the latest official figures.
Developments like Victory Fields in Upper Rissington, delivered by award-winning housebuilder Linden Homes, are among the neighbourhoods where the initiative has helped people with deposits as low as five per cent.
In the Cotswold District Council area, 64 loans worth more than a combined £4 million have been agreed up to July 31st 2014 using the equity loan part of the Help to Buy scheme since it was launched by Chancellor George Osborne in April 2013.
The Help to Buy equity loan option is limited to new-build properties worth up to £600,000. With a government equity loan of up to 20 per cent of the value of the property, eligible buyers only need a five per cent deposit in order to secure a 75 per cent mortgage.
According to separate government figures, the popularity of Help to Buy equity loans has grown in the Cotswolds since the second quarter of 2013 when just one loan was agreed. That grew to seven in Q3 and 14 in Q4.
In the first quarter of 2014 it rose to 15 and then swelled to 26 in Q2 – worth a total £1.8 million over the three months.
Steve Garton, sales and marketing director at Linden Homes Thames Valley, said: “As the figures show, Help to Buy has been a big help to people either looking to get on the property ladder or move to their next home in the Cotswolds.
“Developments like Victory Fields are a great example of where the scheme can be used. It applies to homes worth up to £600,000, so at Victory Fields – there’s no property that can’t be considered.
“However, our advice for buyers is not to take Help to Buy for granted. The government is dedicated to maintaining it but it won’t be here forever.
“Availability also depends on how much mortgage lenders are willing to offer people, and there have been signs this is reducing. Lloyds Banking Group, for example, has cut by 70 per cent the amount borrowers can apply for under Help to Buy.”
Across England, 29,829 properties were bought (legal completions) with the support of the Help to Buy equity loan scheme. The majority of sales were to first-time buyers, representing 85% of total sales, and the average (mean) purchase price was £209,390.
Another Help to Buy option applies both to new-build and existing homes and enables a five per cent deposit too – this time through the government guaranteeing the mortgage provider on a proportion of the loan.
Victory Fields will comprise over 300 homes located almost equidistant between Cheltenham and Oxford. Buyers will look to Linden Homes’ superior quality and all-inclusive value, as well as the assurance of 10-year NHBC guarantee and two-year customer care warranty.
The new community holds the promise of a new primary school, a village square that will include a local shop, a proposed public house, gym and nursery, and green space dotted with play areas, wildlife ponds and tennis courts.
The three, four and five-bedroom properties are just over 11 miles from RAF Brize Norton, the largest RAF station in the UK. Service personnel have the added incentive of being able to borrow up to 50 per cent of their annual salary interest free under Forces Help to Buy.
Designed to assist more military families own their own home, the scheme allows qualifying buyers to borrow up to a maximum of £25,000. It can be used towards a deposit and other costs such as solicitor’s and estate agent’s fees.
To find out more, call 0844 417 8520.
For further press information, contact Claire Cathersides or Claire Oakley at Remarkable Content on 01962 893 893.
08 September 2014
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