This weekend’s financial press looked at the future of Help to Buy, with experts sharing their views on whether the Government scheme should be amended, extended or scrapped beyond its current end date of 2021.
The Help to Buy Equity loan was launched in 2013, and figures suggest that around 170,000 people have used it to buy a property. It is now thought to support 40% of new-build sales in the UK, and many people feel it has been invaluable in terms of boosting the supply of new properties
Some have expressed concern over the risks of negative equity, and the restricted mortgage options for those coming to the end of their deal and looking to remortgage. However the good news is that, although options are more limited, rates are competitive.
Elsewhere the Financial Times reported on the increasing number of borrowers taking up five year fixed rates in a bid to protect themselves from any further interest rates increases. Demand has now overtaken that for the traditionally more popular two year deals. The difference in margin between the two has narrowed significantly in recent years, meaning that those looking for longer term security are no longer paying the premiums they once were.
What the papers said about Help to Buy and a surge in fixed rates