PM brings forward Help To Buy
David Cameron has confirmed that he plans to bring forward a scheme of state-backed mortgages to help increase home ownership to next week. The so-called Help To Buy scheme had not been due for another three months.
How does Help To Buy support first time home buyers?
David Cameron has announced he will bring forward the state-backed Help To Buy scheme to next week, three months earlier than planned.
What does this mean?
- The mortgage guarantees will allow buyers to acquire a newly built home or an existing property worth up to £600,000 with a deposit of only 5%.
- The scheme aims to boost mortgage availability by reducing the risk for lenders because the Government takes on the risk of default when it guarantees a proportion of a loan.
- It will see the state offer guarantees totalling up to £12 billion on £130 billion of high loan-to-value mortgage lending.
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