Buying a home through the second stage of the Help to Buy scheme is likely to work out more expensive than renting in certain parts of the country. This is according to research by Hamptons and Savills estate agents.
A story in the Financial Times highlights that, due to high property prices in London and the south-east, it is likely to be cheaper to rent than pay the monthly mortgage repayments on a 95% per cent Help to Buy mortgage.
Savills looked at two-bedroomed property prices across the UK on a city-by-city basis. They found that in 16 of the major towns and cities, the cost of a Help to Buy mortgage was typically 38% more expensive than renting.
As more of the lenders have signed up the Help to Buy scheme, there is likely to be increased competition between HSBC, Lloyds Banking Group, RBS and Virgin Money to offer the best rates from the start of next year.
October 18, 2013