Government set to announce 95% loan to value mortgage guarantee scheme
The scheme will allow first time buyers and current homeowners to purchase a property up to £600,000 with a 5% deposit
Chancellor Rishi Sunak said: “Owning a home is a dream for millions across the UK and we want to help as many people as possible. Saving up for a big deposit can often be difficult, and the pandemic has meant there are fewer low deposit mortgages available.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, commented: "Turning ‘generation rent’ into ‘generation buy’ has been a focus for Boris Johnson for a while so the return of 95% LTV mortgages for first-time buyers doesn't come as a complete surprise. This, coupled with the extension of the stamp duty holiday, will result in a Budget which is a real boost for buyers.
Mark Hayward, chief policy adviser at NAEA Propertymark, added: “A government backed mortgage guarantee scheme will help first -ime buyers get on the housing ladder at a time when for many owning a home seems an impossible dream. Alongside the potential extension of the stamp duty holiday that we have been calling for, this new scheme will go some way in giving some hope to first-time buyers at a time when the size of deposits required means they fall at the first hurdle.”
Source: Financialreporter.co.uk
If you would like to know how this can help you with your move, contact us now to speak to Christopher Clarke who can explain the various mortgage options for you.