FIRST TIME BUYERS: Mortgage guarantee to help buyers with 5% deposit
A mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week's Budget.
A mortgage guarantee scheme aimed at helping aspiring homeowners with small deposits onto the property ladder and firing up the market will feature in next week’s Budget.
Chancellor Rishi Sunak plans to incentivise lenders to provide mortgages to first-time buyers, and current homeowners, with just 5% deposits to buy properties worth up to £600,000.
He will detail on Wednesday how the Government will offer lenders the guarantee they require to provide mortgages covering the remaining 95%.
The Treasury said low-deposit mortgages have “virtually disappeared” because of the economic impacts of the coronavirus pandemic.
Prime Minister Boris Johnson said: “I want generation rent to become generation buy and these 95% mortgage guarantees help to deliver this promise.
“Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder.”
The scheme, which will be subject to the usual affordability checks, will be available to lenders from April.
Fingers crossed we get a good news update on Wednesday.
If you are thinking of buying this year, we have plenty of properties to choose from for first time buyers.
Take a look at our properties to buy >>>>> here.
Take care,
The Alexanders Team.