Monday, 20 October 2014

Buyers 'unaware' of government mortgage scheme

Almost two thirds of house hunters are unaware of the government’s flagship mortgage indemnity scheme, according to research from a leading house builder.

In a study of more than 2,000 people, Barratt found that 65 per cent had not heard of the newbuy scheme, which allows buyers to purchase a new-build property with a deposit as low as 5 per cent of its value.

First-time buyers on average believe they need to raise a 15 per cent deposit for a home. Barratt claims that 10 per cent is a more realistic figure, with newbuy mortgages available at 5 per cent.

However, the survey found that buyers are broadly more optimistic about the mortgage market. The proportion of those who have experienced difficulties getting a mortgage has halved from 30 per cent to 15 per cent compared to last year. There was a similar cut in the number of people who experienced difficulty selling their homes.

A shortage of homes is now cited as the biggest barrier to house hunters buying a new property. Of those surveyed, 30 per cent said finding a property was their major difficulty, with only 5 per cent saying it was easy.

Newsletter Sign-up

More Newsletters

Related

Articles

  • Phase one of help to buy extended until 2020

    17 March 2014

    Help to buy will be extended until the end of the decade in this week’s Budget, the chancellor has announced. 

  • Barratt doubles pretax profits

    10 September 2014

    Developer Barratt has reported its pretax profits more than doubled from last year, citing the government’s Help to Buy scheme as a significant boost to business.

  • Apocalypse now?

    28/02/2014

    When asked in an exclusive survey about how the housing landscape will have changed in five years’ time, the sector’s responses paint a fairly apocalyptic picture. But is there still room for optimism? Alex Turner reports

  • More than 7,300 help to buy 2 completions

    29 May 2014

    Government statistics show today that 7,313 help to buy mortgage guarantee deals have been completed in its first six months, however an industry expert says the ‘sums do not stack up’ for areas with high property prices.

  • Galliford Try reports 28% surge in pretax profits

    18 September 2014

    House builder Galliford Try has reported a 28% surge in pretax profits.

Resources

  • Fighting back

    01//11/2013

    As the private rented sector continues to grow, so does the number of problematic landlords. Michael Pooler finds out how tenants are taking matters into their own hands to fight for better conditions

  • Reaching crisis point

    02/05/2014

    Tenants on the verge of eviction are being helped to remain in their homes by a recently formed social enterprise that is saving their landlords significant sums in the process. Daniel Douglas finds out how

  • Dragons' Den for retrofit technology

    4 September 2014

    Copying the popular BBC format, Accord Group set up a Dragons’ Den of its own to find the best green technologies to test in a £3m retrofit project. Simon Brandon finds out why

  • Housing lessons to learn

    07/02/2014

    With a week left to enter the Into Africa competition, Erick Kabendera reports from Dar es Salaam on the rise of affordable housing

  • Home sweet home

    06/06/2014

    Viridian Housing is training its staff to recognise signs of domestic abuse and to support affected tenants. Kate Youde finds out how

IH Subscription