First time buyers and home movers are scraping together
increasingly smaller deposits to buy a house through the controversial Help to
Buy scheme, new research shows. The Mortgage Advice Bureau (MAB), which represents
hundreds of UK brokers, said the average loan to value (LTV) for buyers using
the mortgage guarantee element of Help to Buy, which provides Government
guarantees for high LTV mortgages, rose to a record 94.4pc in the three months to
June. It went up from 94.1pc in the quarter to May and 92.6pc in the first
quarter of 2014. This was close to the maximum 95pc LTV available through the
scheme. The data raise concerns that if
house prices fall sharply, more people will be at risk of falling into negative
equity. Read more on the Daily Telegraph website.
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