First-time buyers still hoping to meet Help to Buy deadline

First-time buyers are persisting with Help to Buy purchases as cut-off-point approaches for the housing support scheme.

To be eligible for an equity loan from the Government, homebuyers must legally complete by Friday 31 March 2023 and are expected to have the keys to their home by 6pm on that date.

Data from Legal & General’s SmartrFit affordability calculator tool shows criteria searches for Help to Buy increased by 10% in February, whilst in the same month, first-time buyer searches rose by 12%.

Overseas interest in the UK market remains buoyant, according to Legal & General.

It said the term “visa” has remained the most used criteria search for applicants, adding: “This consistency highlights the important role advisers play in securing foreign investment and the resilient nature of London's housing market. 

“Foreign interest in the London area has grown in 2023 with criteria searches from expat/EU Citizen in UK applicants rising by 9% in February.”
 

The February data confirms how rising living costs are still impacting mortgage applicants, Legal & General said.

Searches for applicants with a second job increased by 19% and applicants with zero-hour contracts rose by 43%.

Legal & General said: “These figures indicate the financial pressures of applicants in needing a higher income to make mortgage payments.”

Jodie White, head of mortgage products and transformation for Legal & General Technology, said: “The increased search results in the Help to Buy scheme show there is still strong demand for schemes which help first-time buyers take a step onto the property ladder.

“The Help to Buy scheme has been a vital tool in helping new homebuyers. As the last elements of the scheme come to an end, there is a real need for new technology-driven initiatives to support brokers and their first-time buyer clients.”