Help to Buy has been a lifeline for first-time buyers (FTBs) according to Miles Robinson, head of mortgages at Trussle.
Robinson said: “The Help to Buy scheme has supported thousands of homeowners move onto or up the property ladder, and in many cases has been a lifeline for first time-buyers to own their own home.”
First-time buyers account for more than 80% of home purchases made using the Help to Buy scheme so far.
Robinson believes that the replacement scheme is essential in a time where higher LTV mortgage products have dwindled.
The new scheme includes benefits such as its regional price caps are higher than the average price for a first-time buyer property in each region.
In addition, the required deposit is 5% of the overall homes value.
Robinson added: “However, support for next-time buyers will end when the 2021 scheme comes into effect.
“While a minority of purchases made using Help to Buy came from next time buyers, their exclusion from this next scheme could impact the property market if this group gets left behind in years to come.
“Existing homeowners who are thinking about Help to Buy will need to act quickly and find a local agent to discuss their options should they be looking to buy using the current scheme.”