With the Labour Party coming into power following their victory in last night’s general election, thoughts will soon turn to the introduction of their proposed Freedom to Buy scheme, which is set to replace the Mortgage Guarantee Scheme.
However, a new study from Barratt Homes reveals that 88% of first-time buyers are unaware of the current scheme, which means cast doubt on how many will benefit from its predecessor under the new government.
Labour’s Freedom to Buy scheme has pledged to support 80,000 young people to get on the housing ladder over the next five years. The scheme also includes plans to build 1.5m over the same period.
The survey also revealed that 87% of first-time buyers were unfamiliar with guarantor mortgages, 63% are unaware of the First Homes scheme, 58% of shared ownership, and 51% haven't heard of the Lifetime ISA.
Barratt found that keyword searches for the mortgage guarantee scheme reached an average of 2,900 each month for the past year, with the most common query being “how do I apply for the mortgage guarantee scheme?”.
Searches for guarantor mortgages reached 5,400 queries a month over the past 12 months, with “who can be a guarantor for a mortgage?” being the most popular question.
Steve Mariner, Sales and Marketing Director at Barratt Homes, said: “Affordable homeownership schemes are great for helping first-time buyers get onto the property ladder, and having a variety of schemes available means that they can choose the best fit for them, depending on their circumstances.
“We have just launched a new shared ownership scheme with Legal and General Affordable Homes called Kickstart, so prospective buyers have even more options to explore. With schemes like these, your deposit is lower, your mortgage is smaller, and you can buy a larger share in your future.”
He added: “However, first-time buyers need to understand the ins and outs of each scheme first before deciding which would work best for them. This is why speaking to mortgage experts for guidance is always recommended.”
