Launched in October 2006, the scheme was designed to allow 20,000 key worker aspiring first-time buyers, step onto the property ladder. However the government suggested that only 100 first-time buyers had benefited from the Open Market HomeBuy scheme. Despite this, a spokesperson at the Department for Communities and Local Government (DCLG), indicated 6,400 key workers qualified for the Open Market HomeBuy scheme, with 700 home purchases set to be completed in the coming months.
Tamsin Hemsley, media relations manager at Nationwide, admitted that the take up of its HomeBuy scheme had been limited, but successful. She said: “We have fulfilled our take up of the product and we are looking at the possibility of adding a fixed rate offer to the scheme. The scheme has been successful, but it accounts for a very small percentage of our lending.”
James Cotton, mortgage specialist at London & Country admitted there was a place in the market for such schemes, but urged the government to provide more information for borrowers. He said: “There is definitely the need for more information about eligibility and the types of property on offer. It can be quite confusing to understand what’s on offer, but there is certainly room for schemes to help people towards home ownership.”
