Help to Buy supports 6,200 North West buyers

Latest figures from the Government show that 6,200 households in the North West have purchased homes through Help to Buy since the programme began, with the region reaching the highest level of mortgage guarantees nationally.

In total, more than 48,000 households have been assisted through Help to Buy, with 94% outside of London and 82% first time buyers. Help to Buy is divided into two schemes, a mortgage guarantee and an equity loan scheme.

The equity loan enables people to buy a newly built home with a deposit of at least 5% of the property price, while the government offers a loan of up to 20%. The rest is covered by a mortgage.

The mortgage guarantee offers mortgage lenders the option to purchase a guarantee on mortgages where a borrower has a deposit of between 5% and 20%. Because of this support, participating lenders are able to offer more mortgage products to borrowers with small deposits.

In the North West, 2,513 homes have been purchased through mortgage guarantee, and 3,667 through equity loans.

The region was the highest for mortgage guarantee completions, followed closely by the South East. For equity loans, the North West was the fourth highest.

The average price of a home purchased through the scheme in the North West was £125,800, compared to the average regional house value of £171,000.

Manchester and Liverpool were ninth and tenth respectively in the list of top ten local authorities for Help to Buy completions. In order, the other eight local authorities are; Leeds, Wiltshire, Birmingham, Bedfordshire, County Durham, Milton Keynes, Peterborough and Bradford.

The Help to Buy equity loan scheme, the part of the scheme for new-build homes, has been extended up to March 2020 with a further £6bn.

Mortgage guarantee data is from the period October 2013 to June 2014, and equity loan date is for the period April 2013 to July 2014.

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