U.K. Help-to-Buy Mortgage Applications Reach £1 Billion

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Approximately £1 billion worth of mortgages have been applied for under the U.K. government's Help-to-Buy program, according to Bloomberg.

More than 6,000 mortgage applications were filed during the first three months of the program, which guarantees loans to homebuyers who can only afford a small downpayment. 

Since previous figure were published last November, the number of applicants has tripled, Bloomberg reports. 

The second phase of Help to Buy was introduced in October, allowing buyers to take out a loan for a home with a value of as much as £600,00 with a downpayment as small as five percent. 

U.K. home values increased in December and are forecast to continue increasing this year.  

Critics of the government program suggest it's helping to create a housing bubble. Prime Minister David Cameron dismisses those criticisms. 

"There are many parts of the country where house prices are barely moving at all," Mr. Cameron told the AP. "We are not helping people to buy flats or homes they cannot afford. We are helping people who do not have wealthy parents, who cannot get a big deposit together, and helping them to realize their dreams."

About 750 people have completed home purchases with the program. 

Purchasers in the program are looking for homes with an approximate value of £160,000, below the national average of £247,000, Bloomberg reports. Approximately three-fourths of the applications are from outside of London and southeast England, with more than 80 percent made by first-time buyers.