Highest Figures in Twelve Years for First-Time Buyers
In 2018 First-Time Buyers made up 50% of house purchases. It's the highest percentage since the financial crisis in 2006.
It is believed to be the case due to schemes and incentives from the government, house builders and great value mortgage offers. Help to Buy, Stamp Duty relief and 95% mortgages have all played a big part in these figures soaring to a new record.
Millennials have still made it their goal to get onto the property ladder despite the climbing house prices. Stating buying a home was more important than anything else, in their stage of life.
Before 95% mortgages were made an option and the Help to Buy scheme was introduced by the government back in April 2013. Saving for a deposit was nearly impossible for a single buyer. Now that 5% deposits are widely accepted, it has eased the pressure for Gen Y.
Part of the Help to Buy scheme is their ISA that is available from a range of banks and building societies. Every month you can save up to £200 and the government will boost your savings by a further 25% on completion of your house purchase. You can only claim the money once you have £1,600 in your ISA, meaning the government would have helped by £400. The maximum bonus you can receive is £3,000.
To qualify for Help to Buy the property needs be within the UK, with a value of £250,000 or less (or £450,000 or less in London) and be purchased with a mortgage.
For further details surrounding Help to Buy, we have previously written a blog to cover all the questions you might have.