North Swindon MP Meets Local Residents Benefiting From Help To Buy

Justin Tomlinson MP has met with a local Swindon couple who have successfully bought their own property through the Governments Help to Buy Scheme at the Old Railway Quarter development.

Since the financial crisis in 2008, larger deposit requirements and reduced equity values mean many credit-worthy households cannot get a mortgage, or are trapped in their existing homes unable to take the next step. That is why the Help-to-Buy scheme was first introduced. The scheme provides a package of measures to increase the supply of low-deposit mortgages for credit-worthy households. The success of this and other schemes means that the number of first-time buyers increased by nearly 60% between 2010 and 2014. Recent data also shows that lending for first-time buyers is higher than that for home movers for the first time in 20 years, with first-time buyers' mortgages up 33%.

The main components of the Help-to-Buy scheme are the Equity Loan scheme and the Mortgage Guarantee scheme. The Equity Loan scheme provides buyers with an equity loan of up to 20% of the value of a new build property, repayable once the home is sold. The Mortgage Guarantee scheme, which helps people to access an affordable mortgage with only a 5% deposit, is coming to an end this year, but thankfully the Equity Loan scheme has been extended. The extension means that a further £8.6 billion will help up to 145,000 more people buy a new-build home.

Justin Tomlinson MP said: “It was great to meet both Daniel and Zoe who were extremely excited to show off their brand new apartment. It is clear that they both work exceedingly hard so they are rightly very proud to be property owners. I want to ensure that all young people get the chance to experience the ownership and security that comes with owning your own home – I still remember the joy I experienced when I got the keys to my home in Taw Hill. Over 160,000 people have bought their own home through Help-to-Buy, with 80% of completions made by first-time buyers. I also welcome the announcement of the Help-to-Buy ISA. This supports people saving up for their first home by providing them with a maximum government bonus of £3,000 on £12,000 of savings: a boost of 25%.”