Help to Buy deals may not be the cheapest

First-time buyers tempted by the Government's Help to Buy scheme should think very carefully before taking the plunge, says the consumer group Which?

The second phase of the scheme was launched last week and should see tens of thousands of younger people get on to the property ladder, with deposits as small as 5 per cent. A host of major lenders have signed up to the scheme and there has been widespread speculation that it could spark another house price boom. However, Which? has said that the rates on offer through Help to Buy may not be as competitive as standard mortgages that also allow people to buy property with a small deposit.

"Only a handful of lenders are offering Help to Buy-backed mortgages at the moment and when you factor in the existing range of first-time buyer products from other lenders, such as guarantor mortgages – as well as a number of other 95 per cent home loans – it's not immediately apparent what the best option is," said Barney McCarthy at Which?