Help to Buy is being successfully used by first-time buyers, Connells has reported.
The group says that a number of purchases have completed using the Help to Buy mortgage indemnity scheme. Its figures show that 86% of applicants using Connells Group Mortgages Services are first-time buyers with an average age of 31 and an average loan size of just over £145,000.
However, Connells also says that over 70% of applications are from the south and central regions of the UK, with only 16% from the north of England and just 8% in the midlands.
Adrian Scott, group mortgage services director at Connells Group, said: “In spite of all the speculation and some criticism of Help to Buy so far, initial figures show that first-time buyers are the main benefactors, and they are purchasing averagely-priced starter homes.
“Although it is too soon to say how this phase of the scheme will play out in the long run, these first applications and completions using Help to Buy show that it is helping first-time buyers purchase their first property.”
He said the early launch of Help to Buy has boosted buyer confidence in the market generally.
Mortgage applications through the Connells Group in November showed a 39% increase in first-time buyer applications compared to November last year, and an overall rise of 32%.
This year, Connells has had a 29% rise in applicants and a 21% increase in viewings.
However, see what lenders have to say about Help to Buy in the next story.
* Virgin and Aldermore Bank are the latest lenders to launch 95% Help to Buy mortgages. Aldermore will allow remortgagers to use the scheme as well as home movers and first-time buyers.
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