New research has shown mixed feelings from aspirant first-time buyers in regards to Help to Buy.
The government-guaranteed mortgage scheme is viewed as the best approach to help people onto the housing ladder according to 45 per cent of those surveyed by the Mortgage Advice Bureau, as reported by the Daily Telegraph.
However, 47 per cent would prefer it if the government would incentivise banks and building societies to launch savings accounts with high interest rates. Such accounts would facilitate keywordfirst-time buyers acquiring a 20 per cent deposit which could be used to secure a mortgage.
Brian Murphy, head of lending at the Mortgage Advice Bureau, said that offering high interest rates on savings to remove the need for Help to Buy was “a novel idea”. However, he stressed that it “could still require an exceptionally high rate or a lengthy period of time for enough interest to accrue so people can save the equivalent of a 20 per cent deposit on a home”.
The second phase of the Help to Buy mortgage scheme launched in October, and is available for properties up to £600,000.