It means that in just 12 weeks, nearly 750 home owners in the UK have completed their purchases and hundreds were able to spend Christmas in their new homes, he added.
In November, ministers published figures showing that in the first month of the scheme more than 2,000 people had put in offers on homes and applied for a Help to Buy mortgage. That number has now trebled to more than 6,000.
The mortgages, once approved, would represent nearly £1 billion of new lending to aspiring home owners who may have previously found the property market out of reach because of the size of deposit required.
As part of the long term economic plan to build a stronger, more competitive economy to secure a better future for Britain, the government is committed to increasing the supply of housing and supporting those who aspire to own their own home.
New figures also show that an additional 20,000 households have also been supported by the Help to Buy Equity Loan scheme, a separate scheme where the government provides an interest free loan to support the purchase of the newly built home.
The government says that house building is now growing at its fastest rate since 2008, and it pledged that house building will remain a critical part of the country’s economic recovery.
The figures show that on average households are looking to buy homes worth £160,000 which remains below the UK average house price of £247,000 and applicants will face average monthly repayments of around £900 and have an annual household income of around £45,000. This means a Help to Buy mortgage represents 23% of borrowers’ gross income.
Help to Buy mortgage applications are still coming in from across the country, and around three quarters are from outside London and the South East, and over 80% from first time buyers.
The large number of applications for Help to Buy mortgages suggests the high Loan To Value part of the mortgage market is once again moving. High Loan To Value mortgages have been the main route to ownership for most first time buyers over the last 30 years, but there have been fewer products available in recent years.
‘The New Year is often a time when people look to make those big life changing decisions like moving home or taking that first step on the housing ladder. But too many people have found themselves frozen out of the market in recent years as a result of the size of the deposit required,’ said Cameron.
‘That is why as part of our long-term economic plan we introduced the Help to Buy scheme, so hardworking people with sufficient earnings can get on, fulfil their aspirations and enjoy the security of owning their own home,’ he explained.
‘In less than three months, the scheme has already helped thousands of people. I want to see that continue in 2014 and for Help to Buy to help thousands more realise their dream of home ownership,’ he added.
Those who have benefitted include Daniel Fuller from Sheffield, a first time buyer who moved into his new home with his wife and two young children at the start of December. The early launch of Help To Buy meant they were able to afford a house now as opposed to waiting until the middle of 2014.
‘The Help to Buy scheme has given us the opportunity to get onto the property ladder. Without this we would have still been renting and buying wouldn’t have been possible, due to the large deposits. It was great to enjoy Christmas as a family in our own home,’ he said.
Another is Michael Williamson of Stafford who moved into his new home with his wife and three year old daughter in the middle of last month. Help to Buy allowed them to afford a house with a garden at a reasonable interest rate.
‘Renting a house and paying all the bills came to over 75% of my wage per month so saving for a deposit of 10% or even 20% was impossible. I wanted a more traditional house with a decent driveway, garden and some character. The new Help To Buy scheme was perfect for me because I could purchase a house with a much lower deposit 5% and the mortgage fees were much less. The amount I am paying for the new house will be less than I was paying in the rented accommodation,’ he explained.
Help to Buy means that Lewis Williams from Wales could buy a property sooner than expected. ‘Help to Buy has been a massive help. We were in a position where we could afford mortgage repayments, but were struggling saving the substantial deposit. We didn’t think we would own our own home for a long time, but the scheme has helped us to buy within months,’ he said.
Jade Green of Lancaster and her partner Ian, had been saving for about two years and found their ideal home but did not have enough for the 10% deposit needed. ‘After a hard few years saving, our dream property came onto the market, we viewed it, fell in love with it, then had to come to terms with the fact that we couldn’t raise enough money for a deposit on a mortgage,’ she explained.
‘Just when we had given up hope, help to buy became available, which was a miracle for us, it made it possible for us to afford the mortgage deposit. Only one week after our first viewing, we put in an offer, which was accepted and five weeks later we moved in. Myself, my partner and our son now own our first family home and we love it. Help to Buy has been a miracle for us,’ she added.
