Help to Buy lifts high loan-to-mortgage loans
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.More evidence has emerged of the dramatic effect that Help to Buy is having on the UK mortgage market.
Research from e.surv, the UK's largest chartered surveyor, has found there has been a dramatic rise in the number of high loan-to-value mortgage loans made over the past year.
High loan-to-value loans occur when buyers put down a relatively small deposit say of 5 or 10 per cent of a property's selling price. In recent years such loans have become hard to attain as banks have reined in lending. However, with the advent of the Government's Help to Buy scheme – which effectively underwrites certain high loan-to-value loans – the numbers of these mortgages being bought has shot up 60 per cent year on year.
Richard Sexton, director of e.surv said: "There is still a long road to travel before the mortgage market is fully recovered, but the recovery is quickening and it is now far easier to take out a mortgage with a smaller deposit saved.
"High loan-to-value lending should continue its recovery in the coming months, but it's important that Help to Buy remains in place to help support borrowers in building a deposit, enabling them to access better rates, and cheaper deals."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments