FIRST TIME BUYERS!! 5% deposits for first time buyers!!
Rishi Sunak look set to GUARANTEE 95% mortgages with government loans in next week's budget!!
- The Chancellor Rishi Sunak is planning 5% deposit guarantee for first time buyers to buy properties worth up to £600,000.
- Mortgage guarantee scheme would help young people with smaller depsits onto the property ladder.
- Proposal is based on George Osbourne's, Help to Buy scheme following the financial crisis.
- Boris Johnson has said he wants 'generation rent to become generation buy'.
- Proposal set to be laid out in the Chancellor's 'giveaway' budget on Wednesday.
Church & Hawes understand that a mortgage guarantee scheme to help thousands of young people onto the property ladder with small deposits is set to 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 per cent deposits to buy properties worth up to £600,000.
He will detail on Wednesday 3rd March, how the Government will offer lenders the guarantee they require to provide mortgages covering the remaining 95%.
Prime Minister Boris Johnson has said he wants to turn young people from 'generation rent into generation buy' and end the atmosphere of exclusion many millennial's and Generation Z have had with the property market.
Heralding the move back in October, he told the Daily Telegraph: 'I think a huge, huge number of people feel totally excluded, from the idea of home ownership, which is so vital for our society. And we're going to fix that – "Generation Buy" is what we're going for.
'We need mortgages that will help people really get on the housing ladder even if they only have a smaller amount to pay by way of deposit, 95% mortgages, I think it could be absolutely revolutionary, particularly for young people.'
Chancellor Rishi Sunak plans to incentivise lenders to provide mortgages to first time buyers, and current homeowners, with just 5 per cent deposits to buy properties worth up to £600,000.
The Treasury said low-deposit mortgages have 'virtually disappeared' because of the economic impacts of the coronavirus pandemic.
He will detail on Wednesday how the Government will offer lenders the guarantee they require to provide mortgages covering the remaining 95 per cent. Rishi Sunak will use a giveaway budget next week to pave the way for a post-lockdown boom.
More than 120,000 residential property sales were recorded last month, according to new figures released by HM Revenue and Customs. Some 90 per cent rate mortgages have come back onto the market, but supply has limited and there is also a strict eligibility criteria.
Last year mortgage lenders routinely began asking buyers to save 20 per cent of the price of their first home to act as a deposit. The scheme, which will be subject to the usual affordability checks, could be available to lenders from April.
It is based on the Help to Buy mortgage guarantee scheme introduced in 2013 by David Cameron and George Osborne, that ran until June 2017.
The Centre for Brexit Policy think-tank has also called on the Chancellor to slash corporation tax to 10 per cent to exploit the UK's new freedoms outside the EU;Tony Blair joined another former prime minister, David Cameron, in warning the Government against any significant tax increases.
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