A recent study by the British independent mortgage broker Mortgage Advice Bureau (MAB) revealed that 40% of adults in the UK are planning to buy a first home, move or remortgage before the end of 2016, when the Help to Buy scheme expires, reports ee24.com citing propertywire.com.
In addition 12% of adult Britons intend to take a mortgage loan within the next year, with a half of them going to buy their first home, while 35% plan to move. The remaining 15% are going to re-pledge the existing house.
About 26% of potential buyers can afford to only 5% of the required amount. However, this is quite enough, because Help to Buy scheme allows you to get a loan in the amount of 95% of project cost. Only 20% can afford more than 20% of the required amount, and 61% go to the market, having the 10% of the desired value of real estate.
The study found that buyers entering the market this year have less revenue than those in 2009. Five years ago, the average home buyer income was £33,485 (€39,789), it now stands at £32,313 (€38,396). This means that government support has allowed to enter the market for those who could not do it on their own.
Approximately 15% of the respondents struggled to save the amount required to obtain a mortgage loan.