The Help to Buy Opportunity

As Help to Buy leaves the market, maximise both the deadline rush and the products that will take its place

The government’s Help to Buy scheme is winding down, providing mortgage advisers with some great opportunities.

Not only is there an opportunity to make the most of the increased pre-deadline demand, but also a chance to offer increased value when newer, more complex options take its place.

The End of Help to Buy

Ending in March 2021 for everyone but first-time buyers, Help to Buy is already seeing consistent increase in demand. To further fuel this, Help to Buy mortgage terms have been extended to 35 years, opening the product up to even more new entrants.

The use of the scheme is already up 9% from last year, and shows no sign of slowing down.

This provides a great opportunity to reengage with existing clients - stressing the end of this scheme and its potential suitability for those thinking about remortgaging.

Combining the interest-free loan with the money from their existing property means clients can aim for a more expensive new build – prompting those not looking to move to consider the financial benefits of doing so.

The same applies to first-time-buyers as 2023 approaches. This can be seen as the end of an opportunity to get onto the property ladder, and over 80% of those using the scheme have been FTBs so far, so prepare your marketing to catch their attention during this rush.

And as more clients onboard to make the most of Help to Buy, be sure to maintain your engagement after you’ve provided your initial advice. Due to the benefits of remortgaging after the first five years, stay present through newsletters, check-in emails, and even Christmas cards to ensure they use your services again.

What Comes Next?

It appears nothing is off the table, including the extension of Help to Buy beyond 2023, as suggested in the government’s 2019 manifesto. Either way, advisers can expect a host of new products to enter the market.

A wider range of 95% LTV mortgages, family mortgages, and even zero-deposit mortgages could grow in popularity. Halifax already offers a zero-deposit mortgage, using a family member’s savings as a guarantee, and similar products could grow in number.

Private entities could even provide an equity loan to replace the government’s, acting as a pseudo Help to Buy scheme.

With Help to Buy no longer the go-to product, advisers will be more crucial than ever in helping clients navigate this innovative new mortgage landscape.