Help to buy benefit being felt in the North West

As new figures show the Help to Buy equity loan scheme has helped over 22,000 new home owners nationwide since its launch, one financial expert believes it has delivered a significant boost for Greater Manchester.

Ian Kelly, director at Chartwell Mortgage Services, who provides independent advice to new Lovell home owners, believes the initiative could still unlock homeownership for many more who perhaps don’t fully appreciate the benefits.

The latest figures from the Department for Communities and Local Government show that over 22,000 new homes have been reserved through the scheme since its launch in April last year, with Manchester among the top five areas where it has been most used.

Nearly 1,000 homes were reserved under the initiative in Greater Manchester alone up to the end of 2013.

He said:

“Help to Buy has proven its worth in the 10 months since its launch. While it’s come in for some criticism in the south, particularly in London, for supposedly inflating prices as people us it to buy homes close the £600,000 threshold, in the North West our experience is that it’s provided a boost exactly where it’s been needed. Essentially it’s been a lifeline for first time buyers and those with little or no equity in their homes who need to move up the ladder to find more space for a growing family.”

Around 90% of sales of newly-built homes through Help to Buy in 2013 were to first-time buyers.

Ian added:

“Essentially, what people need to understand about Help to Buy, is that the Government loan, plus their own 5% deposit, effectively means they are going to their mortgage lender with a 25% deposit. Therefore, they are far more likely to have access to the more favourable mortgage rates.”

The Help to Buy equity loan scheme is available on all new Lovell homes in the North West of England including those in Manchester and Middleton.

Ian added:

“Help to Buy means that first time buyers and families who can easily afford mortgage repayments, which are cheaper than rent in many cases, can get a firm foothold on the property ladder. Crucially, the equity loan is interest free for five years, after which time they can make the decision whether to pay it back or sell their home and move up the ladder.

“We’ve helped a number of Lovell customers in Greater Manchester to move to their dream home, but even now I know there are many more who could benefit from the scheme but may not fully understand exactly how it can help. We’re here, alongside Lovell, to provide advice to help them to choose the right option for their circumstances”.

Lovell is building new homes at The Way in Manchester and Windermere Gardens in Middleton.

The Way offers a range of two and three-bedroom houses in the popular Beswick area. Prices are from £136,500. With Help to Buy, the initial outlay could be reduced to just £109,200.

Further north in Middleton, Windermere Gardens is a development of two and three-bedroom homes situated within a quiet neighbourhood close to the town centre, which is enjoying ongoing regeneration. Prices start from £109,995, with the Help to Buy prices from £87,996.

For more information about Lovell homes and the incentives available, visit www.lovellnewhomes.co.uk or call the sales hotline on 0161 905 8652.