Half of first-time buyers said they would use the Help to Buy equity loan or mortgage guarantee schemes to overcome the barrier of having a small deposit, according to figures from Ocean Finance.
Almost 40% of first-time buyers questioned said being able to save a big enough deposit is the main barrier to owning their own home. This is following by rising house prices, which makes it harder to fulfil tough affordability checks and at the same time, pushes the amount needed for a deposit even higher.
Almost a quarter of those questioned (22%) also said they planned to open a Help to Buy ISA when it launches this Autumn. That compares with 14% who expect to rely on help from their families to fund their deposit.
Commenting on the results, Gareth Shilton, Ocean’s spokesperson, said:
“The research indicates that the Help to Buy scheme is doing its job and helping to remove the deposit barrier that many first-time buyers face. Too many first-time buyers have been frozen out of the housing market because they couldn’t save the 25% needed to get the best deals and make their mortgage affordable.
“It’s interesting to see appetite for the new Help to Buy ISA also, and we’re looking forward to seeing take-up levels of this scheme once it’s launched. The big question, of course, is what will happen when the Government steps back from supporting schemes to get the housing market moving. House builders and lenders need to be having conversations to see how they can work together to ensure the momentum isn’t lost.”
