Fresh data from Legal & General’s SmartrFit tool indicates that as the Help to Buy deadline approaches on 31 March, first-time buyers are continuing to move forward with their plans.
The Help to Buy Equity Loan Scheme, which replaced the original Help to Buy scheme in 2021, will end at the end of the month and is only available to first-time buyers, as reflected in the data. The search for criteria related to the Help to Buy scheme increased by 10% in February, while searches related to first-time buyers rose by 12% in the same month. The data also shows that Visa is still the most commonly used criteria search for applicants, highlighting the important role advisers play in securing foreign investment and the resilient nature of London’s housing market.
The rising living costs continue to impact mortgage applicants, as searches for applicants with a second job increased by 19% and applicants with zero-hour contracts rose by 43%. The February data confirms the direct impact of rising living costs, with missed mortgage payments rising by 14% and a 48% increase in payday loans.
Legal & General's head of mortgage products and transformation, Jodie White, emphasized the need for new technology-driven initiatives to support brokers and their first-time buyer clients, and the importance of advisers in supporting the market segment.
Property Eye. (2023, March 14). First-time buyers persist with Help to Buy as the cut-off point approaches. Retrieved from https://propertyindustryeye.com/first-time-buyers-persisting-with-help-to-buy-purchases-as-cut-off-point-approaches/