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The Government developed the Help to Buy scheme to help people buy their own home with a deposit as low as 5%. The scheme was implemented for new-build and existing properties priced up to £600,000, designed to help boost the housing market. The Bank of England have now stated that the scheme is set to be closed by the end of this year.

Mortgage lenders in general have shown a clear rise but the use of this scheme has decreased. While the help-to-buy scheme is efficient, lending with just a 5% deposit is available outside the scheme at a similar price or even cheaper.

Other Help to Buy schemes are said to be kept, including equity loans to help buy newly-built homes, and the Isa savings scheme aimed at people saving for a deposit. The Help to Buy scheme has been estimated for just 3% of total mortgage lending, and in 2014 accounted for just 6%.

The Financial Policy Committee (FPC) reviewed the scheme which has been accounted for just 25% of mortgage lending for the first three months for the past year. Compared with previous years where a high 70% of mortgage lending was used through the scheme.

There had been speculation around when the Help-to-Buy scheme launched whether or not it would create an unstable housing market. FPC stated that this risk was not affecting the financial stability, and that this had not made an impact on rising prices.

Alternative figures from lenders have shown that the mortgage market was a lot stronger throughout August. This resulted in a 7% increase than in July, and a 15% increase than August a year earlier.