Based on the scheme’s average property price of £153,447 the typical monthly mortgage repayment for the first year is £753 based on moneyfacts.co.uk data compared to the average cost of renting, which stands at £768.
This means that Help to Buy 2 applicants could save £180 annually by paying for a Help to Buy 2 mortgage instead of renting.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “The first-time buyer Stamp Duty announcement by the Labour Party was the latest salvo in the general election to court the vote of potential first-time buyers.
“Whatever policies we end up with after the election, our data shows that the mortgage guarantee scheme has worked: it has got first-time buyers onto the housing ladder and it has saved them money compared to renting.
“The scheme has also been a success in that it is being used by the people it was meant to help.”
The average Help to Buy 2 property price is 34% cheaper than in the wider market (£232,127).
Murphy added: “While the scheme is expected to operate until 2020, lenders need to ensure there isn’t a gaping hole in the market when the scheme comes to an end.
“Otherwise, borrowers with smaller deposits could find themselves locked out of home ownership.”
