Have you been saving your pennies for years in the hope of buying your first home?
The government's Help to Buy scheme, which launched in October last year, is proving popular as a way on to the property ladder.
First-time buyers who have been struggling to save huge deposits now have the option to buy a new-build property through the Help the Buy scheme with a 5% deposit.
And a new survey reveals that seven out of 10 buyers under 40 intend to apply for a mortgage using the scheme.
The survey of more than 2,000 20 to 40 year olds was carried out by credit agency Experian. The research shows that most applicants are in their twenties, with 33% aged 20 to 24 years and 31% aged 25 to 30.
Three in 10 of those looking to use Help to Buy earn less than £20,000 a year.
Help to Buy equity loans are available to first-time buyers, as well as
homeowners looking to move, and can be used to purchase newly built
properties with a price tag of up to £600,000.
‘Help to Buy has brought home ownership to within touching distance for thousands of younger buyers earlier than they may have dreamt possible,' says Peter Turner, Managing Director of Experian Consumer Services.
'It's important to remember that the deposit is only part of the equation and to consider how much you can afford to borrow and repay in the years to come.'
However, some industry experts believe that the funding for Help to Buy,
which is in place until 2016, could run out sooner than expected: in
12 months' rather than two years' time.
‘Lenders will take a close look at your ability to repay and check your credit history. It's advisable to check your credit report and ask for help if needed to ensure your report paints the best possible picture before making an application,' says Peter Turner.
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Caramel Quin is an award-winning journalist and professional nerd who tests technology for newspapers, magazines and online. She has written for Ideal Home since 2012. She prides herself on real-world testing and translating geek speak into plain English. Her pet hates are jargon, pointless products and over-complicated instruction manuals.
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