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£10bn Budget boost: four in 10 new homes buyers are using Help to Buy to get on the property ladder .

help-to-buyA Help-to-Buy funding boost, stamp duty cuts and lower property prices are tempting first-time buyers out of winter hibernation.

Four in every 10 buyers of a new home are taking advantage of the government-backed Help-to-Buy scheme following a £10bn reboot announced in last November’s Budget, report housebuilders.

The government-backed scheme covers homes valued up to £600,000 and allows buyers to purchase with a relatively low deposit of 5pc.

With the government providing an equity loan of 40%, buyers need a mortgage of 55% of purchase price, achievable for those with lower earnings.

No interest is charged on the Help-to-Buy equity loan for the first five years. From year six, a fee of 1.75% applies, rising by RPI plus 1%.

It is not a permanent fixed sum, but an equity loan based on the value of the property. So, it must be paid back, within 25 years or when the property is sold.