Why I’m underwhelmed by Help to Buy II

I am exactly the type of person it’s aimed at: a first-time buyer stuck paying extortionate rent without wealthy parents to hand over a deposit. The first phase didn’t interest me as new-builds are expensive for their size (and often come with high service charges to keep them looking shiny). But, I thought, the second part is for me; maybe I can afford my dream one-bed flat in a rougher part of Croydon.

And then David Cameron went and stuck his political oar in by bringing the scheme forward. Oh yes, it all sounds very nice to be introducing measures to help us wannabe buyers earlier than intended. But those of us wanting to use the scheme had a plan, which involved three more months of saving towards a deposit and fees. All this move did was make Mr Cameron look like he was ‘doing something’ and send the hoard of FTBs and estate agents into an even bigger frenzy than had already been created by knowing the scheme was coming next year.

To add even more disappointment, the first mortgage rates to be announced were somewhat underwhelming. The RBS and NatWest deals were two of the first, at 4.99 and 5.49 per cent respectively, both fixed for two years with no fees. The ‘no fees’ bit is definitely appealing but these rates are only a few basis points off the (admittedly difficult-to-find) existing deals.

I fail to see, however, what Halifax is thinking with its deal. Its two-year fixed rate of 5.19 is about typical but its £999 fee is ridiculous. For any first-time buyer, that’s another grand that could be used towards a deposit.

More deals are coming out of the woodwork and, fingers crossed, more competition will ensue as a result. But, as has been observed time and time again, there is still not enough housing supply to stop prices skyrocketing. Forgive me a moment for being London-centric, but in the capital, estate agents are lazy. They do nothing because any property, in whatever shoddy state, at whatever exorbitant price, will sell within a week or two because buyers live in fear that in a month it will be even more expensive. As time goes by, that carefully-saved deposit diminishes in percentage terms for the amount you need.

And so, what do I do? Right now, my only sensible option is to keep saving and keep hoping that the £200 I’ve held in premium bonds since childhood will one day deliver me a deposit.