Book a Property Valuation
logo

The Help to Buy mortgage guarantee no longer necessary

Posted on: Thursday, October 6, 2016

The Government Help to Buy Mortgage Guarantee scheme (Help to Buy Two) was first launched in October 2013, with the aim of increasing the availability of high loan-to-value mortgages and providing a much needed boost for First Time Buyers struggling to get their foot on the housing ladder.

The Chancellor has now confirmed that this element of the initiative will come to a close at the end of this year as planned, stating in a letter to the Bank of England that ‘the high LTV mortgage market has become less reliant on the scheme as confidence has returned’.

There is no doubt that over the last 3 years the market for First Time Buyers has improved considerably. At the time the scheme was launched there were very few options for borrowers with small deposits, and the intention was therefore to encourage lenders back to that riskier end of the market.

Since 2014, according to the Financial Policy Committee, lending above 90% LTV within Help to Buy has fallen from 70% to 25%, yet total lending at this LTV has not declined. More lenders are now offering a greater range of deals without being reliant on the scheme, and the market is looking healthier as a result.

For those who still require a helping hand to get that deposit together, there are other options available. The first part of the initiative, the Help to Buy Equity loan, provides a 20% interest free Government loan for 5 years (40% in London) which buyers can combine with their own 5% deposit. This scheme is only available to those buying new build properties, but is set to continue until 2020.

The Help to Buy ISA will also continue to be available. This allows a buyer to deposit their own savings - £1,000 initially, and £200 per month – and benefit from a 25% uplift in the form of a Government bonus when they do decide to buy.


Despite some recent criticism over the fact that the bonus is paid on completion rather than at exchange of contracts, this remains an excellent way for First Time Buyers to boost their savings. Those buying together can have an ISA each, and double up the benefit, so that additional bonus can prove to be quite significant.

Like this post? Read more on Mortgage Advice here.

The Bank of Mum and Dad is also still a popular way for parents to help their children buy a property. This could be via a gifted cash lump sum to help with the deposit, parents acting as guarantor on their child’s mortgage, or even taking out a joint mortgage on a property.

Getting on to the property ladder is not easy, but the Help to Buy Mortgage Guarantee scheme certainly appears to have served its purpose, resulting in a greater number of deals and a more robust market.

If you are considering a high loan-to-value mortgage and need mortgage advice, then please speak to the Guild Mortgage Service provided by fee free L&C Mortgages.

You can contact L&C mortgages on: 0800 073 1945

What Our
Clients Say

"

I would highly recommend Hardings. Their knowledge of the local area is outstanding, and they give honest and reliable advice. They have always been my partner of choice when buying and selling.

Rhiannon Prothero

"

Have used Hardings for many year on both personal and commercial property deals. Have always found them to be transparent, honest, authentic, and a pleasure to work with. Will continue to use in the future.

TB

"

I would highly recommend Hardings Estate Agents. They have excellent knowledge of Windsor and the surrounding areas, and are extremely professional, responsive and courteous. I would not hesitate to using them again the future. I recently dealt with Milica who was instrumental in securing us our new home in Windsor as well as the sale of our existing property. She was a fab negotiator and a real pleasure to work with from beginning to end. Thank you!

Jonathon Beresford

"

Hardings of Windsor managed our purchase with complete professionalism and went over and above in my opinion to manage the transaction and chain, resulting in a really smooth purchase. Milica at Hardings constantly provided timely updates and managed respective solicitors and the chain effectively, always responding quickly to queries. The whole transaction would not have happened without Milicas' focus on making all parties comfortable and satisfying all queries, not only professional but a delightful and welcoming personal approach that was a constant throughout. Thanks Hardings! Thanks Milica!

Stuart Blatch

"

I would recommend using Hardings estate agents when buying or selling your property. Dominic (Scully) was always available, helpful and genuinely interested in my purchase and always calm and compassionate. If I ever move again my first choice will be Hardings.

Cath Powell

"

Dom and the team at Hardings were so helpful and efficient when I purchased my flat - friendly and professional service and kept us up-to-date the whole way through the process. It was my first time buying and so was very nervous but they helped me feel at ease.

Freppell

"

We bought and sold through Hardings and can't recommend their professional service enough. The whole Team are really lovely, we were kept informed throughout the process and never had to chase anything.

Natalie Quint

"

I used Hardings when I bought my property as well as when I sold it and the service has been fantastic both times. I very much recommend Hardings!

Therese Jouini

"

We recently purchased our new home with Hardings Estate Agents. The whole team there were very helpful and flexible with us, arranging viewings quickly on the same day. They were always quick to respond and if ever our point of contact was not there, the service did not change as they work well together as a team. We received a personalised service, which allowed the sale to proceed quickly. Thank you all and we recommend Hardings Estate Agents without hesitation.

Mike B

"

What a pleasure it was to deal with Milica from Hardings. She sourced the perfect property for me and my family (while we were still abroad) and worked endlessly to put the deal together. I would give more than 5 stars if at all possible!

C D

"

Fantastic customer service and made what could have been stressful a total breeze. Dominic and Louisa were brilliant in helping me and my parents buy and sell our houses - reliable, helpful and thoughtful. Thank you!

Eloise Harris

"

Thank you, Dominic and Louisa - having not moved for over 30 years you helped me all the way, step by step. You were always polite, communicative, reassuring and very supportive. Would recommend Hardings wholeheartedly.

Anna Bowen
How Much is Your Property Worth?

How Much is Your Property Worth?

A senior member of our sales team will visit your property to discuss current market trends and how your home; based on size, condition and location should be pitched to achieve the best possible price and buyer. Coupled with an excellent understanding of the local market we do a detailed analysis of what else has sold and what is coming onto the market so we can give you the best chance to capitalise on your biggest asset.

Book a Valuation