As a result, the average HTB2 loan also reached its lowest point of the year: £128,796 compared to £131,706 in October (a 2% fall).
Mortgage Advice Bureau's National Mortgage Index found that HTB2 applicants in November needed 89% less finance for their deposit, compared to a typical deposit in the wider purchase market of £68,828.
With an average loan to value of 94%, buyers using HTB2 used an average deposit of just 6% to make their purchase, compared with 30% across the whole of the market.
Applicants are increasingly targeting more affordable properties, with the average purchase price for a HTB2 property standing at £136,652 in November, a monthly fall of 2% (down from £140,147) and 40% below the market average of £227,619.
The average salary for HTB2 applicants in November was £27,807, down 5% since October (£29,363). This was again the lowest seen in 2014 as less affluent buyers were attracted by the scheme’s low deposit requirements.
HTB2 applicants were also five years younger than the market average during November, aged 31 compared with 36 across all homebuyers.
Brian Murphy, head of lending at Mortgage Advice Bureau, comments:
“The Help to Buy mortgage guarantee scheme has consistently reached its target audience in 2014, attracting buyers with lower salaries who are looking to buy more affordable properties without putting down a hefty deposit.
“The fact that the average HTB2 deposit has now fallen to less than £8,000 will be welcome news for first-time buyers, who are facing property prices that are 12% higher year-on-year despite the recent slowdown in house price growth.
“With both parts of Help to Buy continuing into 2015 alongside the recently announced Starter Home scheme, the government has proven its dedication to providing first-time buyers with affordable routes onto the property ladder. Many lenders have followed suit, but there still needs to be greater long-term support if we are to improve the options available for less affluent first-time buyers.”
