Research from local estate agents Reeds Rains shows that only 12.8 per cent of people understand the Mortgage Guarantee scheme, which is the second part of Help to Buy.

This is despite the fact that the Help to Buy scheme as a whole has helped more than 50,000 people in the UK.

The alarmingly low 12.8 per cent figure comes from research conducted on behalf of LSL Property Services plc, with feedback based on a sample of 452 Reeds Rains landlords.

The second phase of the Government’s Help to Buy scheme (Mortgage Guarantee) was introduced last year, making getting on to or moving up the housing ladder more accessible.

Home owners and first-time buyers may now be able to purchase a home with as little as a five per cent deposit.

Mortgage adviser Simon Davis from Reeds Rains in Stretford explains Help to Buy part two: “This scheme allows you to get a mortgage with just a five per cent deposit and applies to all properties, both new and old, which are under the value of £600,000.

“You must have a good credit rating and cannot apply for a Help to Buy mortgage if you have overdue amounts which are equivalent to three months’ payments on a mortgage or other loans in the past two years, had a county court judgment over £500 or bankruptcy order within the past three years. You will not be able to access mortgages under the scheme.

“Reeds Rains offers professional advice to ensure people only borrow what they can reasonably afford to repay.

“When we meet our customers there will be checks to make sure they can afford their mortgage payments.

“We will explain to you how mortgages work and contact you on a regular basis to talk through how your house hunting is progressing and keep you updated on the mortgage market.

“Although many people may not understand Help to Buy, we’re more than happy to explain it.”

To find out how Reeds Rains can help you in finding a mortgage or in buying or selling a property, simply contact the local team at Reeds Rains Stretford, 139 Barton Road, M32 8DN, call them on 0161 865 1567 or email them at Calls may be recorded for training and/or monitoring purposes.