.

The government is set to announce a new mortgage guarantee scheme during Wednesday's Budget.

The scheme will offer incentives to lenders which have "virtually disappeared" during the pandemic, the Treasury said.

The scheme is set to launch to lenders from April and will allow both first-time buyers and current homeowners to purchase properties 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.”

The government first announced plans for a new scheme to increase the number of 95% LTV mortgages last October. Boris Johnson reportedly asked ministers to design the plan, which he said would involve removing stress tests for mortgage applicants, instead extending “a form of state guarantee” to lenders to de-risk the loans.

Mark Hayward, chief policy adviser at NAEA Propertymark, added: “A government backed mortgage guarantee scheme will help first -time 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.”

Subscribe to Updates And Join Over 1K Subscribers Today!

Subscribe to:

Have something to say? Leave a comment below.

Leave a comment   Like   Back to Top   Seen 44 times   Liked 0 times

Subscribe to Updates

If you enjoyed this, why not subscribe to free email updates and join over 1009 subscribers today!

Subscribe to Blog updates

Enter your email address to be notified of new posts:

Subscribe to:

Alternatively, you can subscribe via RSS RSS

‹ Return to Blog

We never share or sell your email address to anyone.

I've already subscribed / don't show me this again