Help to Buy scheme 'essential’ with fewer high LTV products – Trussle

The new Help to Buy scheme will be “essential” for first-time buyers, with fewer high LTV mortgage products on the market, according to Trussle.

The online mortgage broker described the scheme as a “lifeline” for first time-buyers to own their own home.

In August, the government announced it was extending the Help to Buy scheme deadline to help customers that may have experienced delays in construction due to coronavirus.

The new Help to Buy scheme, which will replace the current scheme, will come into place from 1 April 2021 and run until March 2023 – with no plans for further extensions expected. The new scheme is set to introduce property price caps and will be restricted to first-time buyers only.

Trussle head of mortgages, Miles Robinson, highlighted that first-time buyers have accounted for more than 80% of home purchases made so far using the scheme.

“The Help to Buy scheme has supported thousands of homeowners move onto or up the property ladder, and in many cases has been a lifeline for first time-buyers to own their own home,” Robinson said.

“With first-time buyers accounting for over 80% of home purchases made using Help to Buy so far, the new scheme is essential in a time where higher LTV mortgage products have dwindled.

“The new scheme has some additional benefits for those looking to buy their first home. The scheme’s regional price caps are higher than the average price for a first-time buyer property in each region, ensuring people will be able to afford a home in their local area.

“Also, the required deposit is only 5% of the overall home price, significantly less than the average first time buyer deposit needed across the country.”

However, Robinson also noted that the new scheme’s exclusion of next-time buyers could impact the housing market, should this group get left behind.

“Support for next-time buyers will end when the 2021 scheme comes into effect,” he continued. “While a minority of purchases made using Help to Buy came from next time buyers, their exclusion from this next scheme could impact the property market if this group gets left behind in years to come.

“Existing homeowners who are thinking about Help to Buy will need to act quickly and find a local Help to Buy agent to discuss their options should they be looking to buy using the current scheme.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.