First 10 Help to Buy purchases complete

The latest phase of the government's Help to Buy mortgage guarantee scheme, launched a month ago, has already seen the first 10 home purchases completed, according to new figures from the first two lenders involved.

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Royal Bank of Scotland (which owns NatWest) and Lloyds Banking Group (which lends though the Lloyds Bank, Halifax and Bank of Scotland brands), have received a combined 2,384 applications since Help to Buy was extended to all buyers and all types of homes on October 8.

These applications could turn into mortgages worth up to £365m, and have already led to more than 2,000 offers and 10 completed purchases.

Stephen Noakes, mortgage director at Lloyds Banking Group, said: “We’ve been able to help our customers with our participation in schemes such as Help to Buy.”

The first phase of Help to Buy was launched in April, but only provided help to first-time buyers buying new-build homes. The extended scheme, on the other hand, is open to all buyers and for all types of property, and is designed to encourage lenders to offer 95% mortgages.

To qualify, you simply need to be buying a property that is not worth more than £600,000 and to have a deposit of at least 5%.

The government will then guarantee up to a further 15% of the property's value, in return for a fee from the lender offering the mortgage deal. Most of those taking advantage of the scheme so far are first-time buyers keen to get a foot on the housing ladder.

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