Mortgage guarantee to help buyers with 5% deposit
There will be a major boost for first-time buyers in next week’s Budget with the return of 95% loan-to-value mortgages.
There will be a major boost for first-time buyers in next week’s Budget with the return of 95% loan-to-value mortgages.
The new mortgage guarantee scheme intended to help first-time buyers with 5% deposits onto the housing ladder will be unveiled by the chancellor on Wednesday.
The aim is to stimulate the housing market, get more younger people onto the housing ladder, and increase property transactions.
Mortgages with 5% deposits have been stopped by most banks during the past year.
The chancellor plans to incentivise lenders to provide mortgages to first-time buyers, and existing homeowners, with just 5% deposits to purchase properties worth up to £600,000.
The prime minister commented: “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 chancellor is also expected to use the Budget to announce that the stamp duty deadline of 31 March is to be extended until the end of June.