8 Oct

New mortgage scheme comes into effect today

New mortgage scheme comes into effect today

The Government has today - October 8th 2013 - officially launched its groundbreaking scheme designed to help people buy their own homes.

Costing a total of £12 billion, the scheme will see numerous top High Street Banks such as Natwest, RBS and Halifax offering Help to Buy mortgages.

This new type of mortgage will focus on helping people who cannot afford large 20 per cent deposits.

Buyers under the scheme may now only have to pay a five per cent deposit with the government proposing it will provide up to 15 per cent of the house’s value (depending on the size of the deposit).

The new mortgages will start to come into effect this week and many lenders are preparing for an influx of buyer interest.

George Osborne, chancellor of the exchequer said: “Through Help to Buy: mortgage guarantee I want to help those families that have saved for years, earn decent salaries, but cannot afford the deposits currently being asked for by the banks. I want young people to have the same chance of getting on the property ladder as their parents and grandparents.”

Many believe that the scheme will have a positive impact on the housing market as more people will now be able to get on the property ladder.ADNFCR-1222-ID-801647110-ADNFCR

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