It’s all over the news: the government is bringing it’s expanded Help to Buy scheme forward from next January to next week, and widening its remit by including older homes and not just new builds.

The government will guarantee up to 15% of loans within the scheme, with the idea that this will give participating lenders more confidence in mortgages with smaller deposits (high LTV or Loan to Value). The big idea is that this will open up the market to more house buyers.

We’ve said it before: here at Limetree, we like good economic news. However, we’re not going to say it quite yet. One of our most important good-news indicators is an increased variety of mortgage products. Lenders offering more packages gives buyers a better range of options. So, why are we hedging our good news cry?

Well, we’re waiting for more lenders to join the Help to Buy scheme. Right now, only two lenders – Lloyds and RBS – have said they’ll be taking part, and we’d like to see more. This doesn’t mean the news is bad – it means we’re watching for more signs of a healthier property economy, and Help to Buy might indeed be part of that. The good news isn’t in the launch of a scheme, but in the results.

This news does mean, however, that people can start considering the scheme sooner than next year. So, let’s have a look at your particulars and talk about all your property options. We like good news, but we like talking about the details more!

Posted in Market Watch, Mortgages