Leicester Is England’s Help to Buy Hotspot

Interactive Map reveals Leicester is #1 Help to Buy Hotspot with 892 Mortgage Completions

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New research into the Help to Buy mortgage scheme, which is now 2 years old after first launching in April 2013, has revealed that Leicester is the England’s Help to Buy hotspot.

An interactive heatmap compiled by TotallyMoney.com, using housing market data from the HM Treasury, recorded 892 mortgage completions in the city of Leicester, the highest level of completions through the scheme in the country.  Here are a few more key findings:

  • Mortgages on 52,691 Homes (as of February 28th, 2015) in England have completed as a result of Help to Buy so far.
  • Leeds was the 2nd biggest Help to Buy hotspot, with 891 completions.
  • MK42, in Bedford, is the England’s top Help to Buy postcode with 309 completions.
  • Over 400,000 homes in England are currently eligible for Help to Buy.
  • 600% of England’s Postcode Districts e.g. NW1 (1261 out of 2117 Total) have yet to see any ‘Help to Buy’ Mortgage Completions
Top 10 Regions Total Completions
Leicester

892

Leeds

891

Hampshire

811

Birmingham

788

Wiltshire

749

Liverpool

726

Staffordshire

697

County Durham

696

Norfolk

685

Bedford

683

Although the scheme has reached 53% of England’s postcodes, the impact of Help to Buy is being felt across the country.

Official data from the Mortgage Advice Bureau revealed that, in February 2015, the average age of first-time buyers using the Help to Buy scheme was 31, compared to a national average of 37 among house buyers not using the scheme. The average income of those using Help to Buy versus that of non-Help to Buy first-time buyers was also markedly lower.

Commissioned to take a closer look at Help to Buy two years after the launch of the scheme, the brand new map gives a clear overall picture of the scheme’s availability and popularity in England. The map includes all data from both phases of the scheme, incorporating figures from both Help to Buy 1 and 2. Here’s how the two differ:

 

  • Help to Buy 1 – Equity Loans
    The first incarnation of Help to Buy gives first-time buyers who purchase eligible new builds access to a 5 year interest-free Government loan amounting to a maximum 20% of the property’s value. After the 5-year interest-free period, interest is charged at 1.75%, with annual rises of 1% above inflation. Participants must have a minimum deposit of 5% and must cover the remaining 75% with a mortgage. 
  • Help to Buy 2 – Government Guarantees
    By offering lenders the option to purchase Government guarantees on mortgages, the second phase of Help to Buy makes it possible for mortgage providers to offer higher loan-to-value deals to consumers. This means that first-time buyers (and existing home owners) can buy eligible properties with a more achievable minimum deposit of just 5%. Typical deposits are in the range 5-15%, with a loan-to-value of 80-95%.

The revealing interactive heatmap was created by credit comparison experts TotallyMoney.com to explore the reality of Help to Buy two years after the initial phase’s launch. You can explore the map and the scheme yourself on the TotallyMoney.com website.

Type in a postcode to discover the status of Help to Buy in any area of the UK and get of-the-minute facts and figures on:

  • Equity loan completions
  • Mortgage guarantee completions
  • Median property price
  • Number of properties available

Alternatively, take a wider view and zoom in on the interactive map to scour the country for Help to Buy hotspots both near and far. Scroll below the map to discover the top Help to Buy postcodes, complete with average asking prices and completion figures.

 


Data Sources
TotallyMoney.com Help to Buy Map - http://www.totallymoney.com/help-to-buy-map/

Postcode Districts - http://www.afd.co.uk/news/datanews.asp

Equity Loan Completions (1 April 13 to 28 February15 – Latest Data Available)  - http://opendatacommunities.org/data/housing-market/help-to-buy/num-loans/loan-type-postcode-dis

Mortgage Guarantee Completions (8 October 13 to 30 June 14 – Latest Data Available) http://opendatacommunities.org/data/housing-market/help-to-buy/num-loans/mortagegaurantees/completed-loans-postcode-dis

Median Property Prices & Number of Properties Available under £500,000 (As of 21 Feb 15) - http://www.home.co.uk

Notes to editors

TotallyMoney.com, launched in 2007, is the UK’s leading credit-focused comparison website which sets out to make it simpler for consumers to compare credit cards, loans and mortgages. With a revolutionary approach to credit comparison, TotallyMoney.com uses exceptional comparison tools to empower people to make better financial choices.

For more information, including an embeddable version of the TotallyMoney.com Help to Buy heatmap please contact Pete Campbell at pcampbell@totallymoney.com 

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