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Mortgage Guarantee Scheme

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Sell My House Quickly found another interesting article about properties in Ealing. Budget: Mortgage guarantee scheme to help those with small deposits.

A mortgage guarantee scheme aimed at helping aspiring homeowners with small deposits onto the property ladder and firing up the market will 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% deposits to buy properties worth up to £600,000.

He will detail on Wednesday how the Government will offer lenders the guarantee they require to provide mortgages covering the remaining 95%.

The Treasury said low-deposit mortgages have “virtually disappeared” because of the economic impacts of the coronavirus pandemic.

Prime Minister Boris Johnson said: “I want generation rent to become generation buy and these 95% mortgage guarantees help to deliver this promise.

“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 scheme, which will be subject to the usual affordability checks, will 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.

Aiming to reinvigorate the market following the 2008 financial crisis, that scheme – distinct from the Help to Buy equity loan scheme. It was said to have helped more than 100,000 households buy a home across the UK.

But there were also concerns that it artificially inflated prices and housebuilders’ profits.

Mortgage Guarantee SchemeShadow housing secretary Thangam Debbonaire raised concerns. It was about the plan and urged Mr Sunak to deliver a Budget “with a relentless focus on jobs and growth”, with Labour having said now is the wrong time for tax rises.

“What young people need to get on is the secure future that comes with a decent job and genuinely affordable new houses to be built for them to make homes of, not going back to the days of sky-high mortgages,” she said.

We found this article about Mortgage guarantee scheme to help those with small deposits on Ealing Times. Kindly click the link to read the full story.

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