Reports have been circling that the equity loan could be brought back to boost first-time buyer support.
Here, Which? delves into the rumour and looks at what options are available that could help first-time buyers onto the housing ladder now.
Is Help to Buy returning?
The most recent scheme allowed first-time buyers to borrow an equity loan to cover up to 20% (or 40% in London) of their property purchase price.
A Downing Street spokesman told us this week that 'supporting aspiring homeowners is a government priority', but stopped short of confirming whether Help to Buy will be returning.
'We are committed to delivering 300,000 new homes per year and are investing £11.5 billion to build the affordable, quality homes this country needs,' the spokesman said.
There could be a precedent for it coming back though. In Wales, Help to Buy has been extended until 2025.
Find out more:Should Help to Buy come back?
The most recent government statistics show there were 383,903 properties bought using a Help to Buy equity loan between 1 April 2013 and 31 December 2022.
However, during its decade-long run, the scheme split opinion, with critics blaming it for inflating house prices.
Find out more:What other first-time buyer support schemes are there?
It's not clear if the Help to Buy scheme will come back in England, but there are other schemes available now which could help first-time buyers buy a home:
:: ::: :Low-deposit mortgages
A major factor working against first-time buyers is the size of a deposit needed to purchase a house. According to Halifax, the average deposit put down is now more than £62,000.
The best rates on 95% mortgages
Interest rates come at a premium, so expect to be paying back a substantial amount each month. But taking on a 95% mortgage could be your way of getting onto the property ladder. The tables below show the cheapest rates currently on the market:
Two-year fix
Five-year fix
If you can afford to do so, a bigger deposit will save you money in the long run.
Stretching to a 10% deposit can make a big difference in your monthly repayments as the leading rate for a two-year fix is 4.82%, and 4.42% for a five-year fix.
Return of the 100% mortgage
To be eligible, borrowers need to have a good recent track record of paying rent - giving proof of 12 consecutive months of rental payments over an 18-month period. The monthly mortgage payment also cannot exceed their average monthly rent from the past six months.
Find out more:source https://www.which.co.uk/news/article/is-help-to-buy-coming-back-aV4xo2O75Pna