With figures released showing Help to Buy Equity loans across the region remain at high levels, Barratt Homes reveals the scheme is still going strong at its Rotherham developments, with 50% of new homes being purchased through Help to Buy at its Evolution development, and almost 40% at its The Hedgerows development.
Recently released figures show that since the scheme was launched in April 2013, there have been 699 loans taken out in Rotherham, working out at 6.1 loans per 1,000 homes. The scheme allows people to buy a new home with just a 5% deposit and is set to continue until 2021.
Although the mortgage guarantee part of the scheme ended in December last year, the equity loan scheme is still going strong. This part of the scheme has been largely successful in helping increase the supply of high loan to value mortgages (up to 95%), thereby helping first time buyers. The average purchase price of a home bought under the scheme is £226,887, with the vast majority (81%) being used by first time buyers to get on the property ladder.
The Help to Buy equity loan scheme allows a homebuyer to secure a brand new home up to the value of £600,000 with only a 5% deposit. The government lends the buyer 20% of the value of the property in the form of an interest free equity loan for five years. This then means buyers can access some of the great deals available for a 75% mortgage, making new homes much more affordable.
Gavin McCarthy, Sales Manager at The Hedgerows and Evolution, said: “It is really great to see that the Help to Buy scheme is so successful, not only at The Hedgerows and Evolution, but across Rotherham. It is brilliant that we have been able to help people who never thought they could get onto the property ladder move into their new homes, and we hope people continue to take advantage of this great scheme.”
Barratt Homes is currently offering Help to Buy at various developments across the region, including its The Hedgerows and Evolution developments in Rotherham.