New Government Backed Mortgage Announced
The chancellor announced that first-time buyers will get a “government guarantee” on mortgages, with a deposit of 5%. Many big lenders are already backing the scheme, according to the chancellor.
The new mortgage guarantee scheme is designed to help more first-time buyers onto the housing ladder.
The aim is to stimulate the housing market, get more younger people onto the housing ladder, and increase property transactions; good news for agents.
Mortgages with 5% deposits have been stopped by most banks during the Covid pandemic.
The chancellor will incentivise lenders to provide mortgages to first-time buyers, and existing homeowners, with just 5% deposits to purchase properties worth up to £600,000.