According to an article published by mortgage strategy The Help to Buy Scheme caused 95 per cent LTV loans to increase 383 per cent to 271 products from 56 when the scheme was first launched.

This scheme had been set up back in October 2013 and is due to end this year.

Finance expert Charlotte Nelson from Moneyfacts said : “First-time buyers everywhere, regardless of whether they took advantage of the scheme or not, have a lot to thank it for – essentially, it acted as a catalyst for lending at 95 per cent LTV and helped to bring a measure of normalcy back to the market.“As a result, the number of products available at 95 per cent LTV has increased by 383 per cent since the start of the scheme.

“If a borrower managed to find a suitable offer, the cost of the mortgage repayments was high. Today, the cost of a mortgage at this LTV is substantially cheaper; for example, the average rate of a two-year fixed rate mortgage at 95 per cent LTV has fallen by a whopping 1.59 per cent since October 2013.”

Nelson added that the end of the scheme could hit borrowers, but that the current competitiveness of the market would help them.

She says: “They should take advantage of the deals available now to avoid disappointment in the future.”

 

 

Source :https://www.mortgagestrategy.co.uk/explosion-in-95-loans-linked-to-help-to-buy-moneyfacts/   02/06/2016