Feb 27, 2021

Budget 2021: Mortgage guarantee to help buyers with 5% deposit

A new mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced at next week's Budget. The new scheme is not restricted to first-time buyers or new-build homes, but there will be a £600,000 limit. Chancellor Rishi Sunak - who will unveil the scheme in a Commons speech on Wednesday - added: "Owning a home is a dream for millions and we want to help as many people as possible." The latest scheme is based on the Help to Buy mortgage guarantee scheme, which was introduced under David Cameron's government in 2013 and closed to new loans at the end of 2016. Housing charity Shelter said the scheme increased house prices by 1.4%. The Help to Buy mortgage guarantee scheme was distinct from the Help to Buy equity loan scheme that still allows first-time buyers in England to take out a government loan to put towards the cost of buying a newly-built home.

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