Help to Buy is proving so popular that the interest-free loans allocated by the Government under the scheme are expected to run out sooner than expected. The equity loan part of Help to Buy was due to be available for three years, but it is widely anticipated among mortgage experts that the Government's funds allocated to the scheme will soon be used up. Ray Boulger , of mortgage brokers John Charcol, recently suggested that the funds will not last much beyond two years. And with the scheme proving so popular, there are fears that its sudden withdrawal could have an impact on the housing market. The Chancellor announced Help to Buy last April and the equity loan scheme was introduced immediately in England . It provides a loan of up to 20 per cent on properties valued up to Pounds 600,000. The buyer needs a minimum of a 5 per cent deposit. The equity loan part of the scheme was introduced in Scotland in September on properties valued up to Pounds 400,000 and in Wales at the beginning of this year, on properties up to the value of Pounds 300,000. More than 5,300 buyers were helped during the first six months of the scheme in England , according to Communities and Local Government. And the first figures for the Scottish version of the scheme have been released, showing more than 200 borrowers have bought a new home using the equity loan scheme. A further 1,205 applications were received by the New Year for the scheme. Help to Buy is divided into two parts - equity loan and mortgage guarantees. More details about how each of the schemes work can be found on the Zoopla website at www.zoopla.co.uk/help-to-buy/ . Under the equity loan scheme, the Government provides a loan of up to 20 per cent of the value of a new build home, interest free for the first five years. The mortgage guarantee scheme offers lenders the option to purchase a Government guarantee on mortgages, where a borrower has a deposit of between 5 per cent and 20 per cent. It is available on both new build and existing homes, depending on the lender used. Keep up-to-date with all the property news in the county with Myra Butterworth , web editor at Zoopla.co.uk
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