Wednesday, 03 September 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.

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