The scheme was launched in the first week of October to help get people on to the property ladder but it’s proving to be of little help to those with bad credit histories.
The Royal Bank of Scotland reportedly booked 5,000 mortgage appointments in the first four days from the scheme going live.
Under the second phase of the scheme, the government is guaranteeing 15 per cent of a home loan to help banks to grant mortgages to would-be buyers.
However, most banks are continuing to enforce their stringent rules with regards to loans and mortgage payments, making it difficult for those with bad credit in the UK to be accepted.
It also won’t be possible to get a loan if the strict income checks are failed, as it is deemed that continuous repayment is unlikely.
On a 95 per cent mortgage deal, the repayment is likely to be in the region of £1,000 a month for an average property.
As a result, some of the families who need access to homes are unable to use Help to Buy to their advantage.
Those who are struggling to afford rents are not able to seek cheaper long-term alternatives and many continue to use short term loans to make ends meet.
However, it is also understandable that the banks want to ensure their own business protocol is not impacted by failure to repay.
Before the recession, many critics of the housing market pointed to the number of banks lending to those with bad credit histories already so it is a sign they have learned from past mistakes.
The scheme is available for three years and the early signs are that banks will need very clear information when deciding on whether to grant loans or not.