According to new data from Mortgage Advice Bureau, first-time buyers who have used the Government’s Help to Buy mortgage guarantee scheme are spending £180 less per year on repaying their mortgage than if they were renting.
Data from Moneyfacts.co.uk shows that based on a 95% loan on the average Help to Buy 2 property price, the typical monthly mortgage repayment for a borrower in their first year would be £753 (or £9,036 annually).
In comparison, the average rent across England and Wales now stands at £768 per month. This means that Help to Buy 2 applicants could save £180 annually by paying for a Help to Buy 2 mortgage instead of renting – as well as paying off debt on their own home rather than for a rented property.
The average Help to Buy 2 property price is £78,681 or 34% less expensive than the average purchase price in the wider market (£232,127).
