In an attempt to stimulate the economy and the stagnant housing market the Chancellor George Osborne has announced a number of new plans to help struggling homebuyers.
Here is a summary of the new plans and what they could mean for you as a homebuyer:
1. The Help-To-Buy scheme
From April 2013 the Government will commit £3.5bn into the shared equity loan scheme to assist those struggling to find mortgage deposits for new build properties. The scheme will include a 5 year interest free loan worth 20% of the value of a new build property worth up to £600,000. Essentially this could mean that homebuyers need only provide a deposit of 5%, and with the government loan of 20% the buyer would only require a mortgage of 75% of the value.
2. The Mortgage Guarantee scheme
In 2014 the Government will commit £130bn to help people who cannot afford large deposits. It is envisaged that homebuyers could provide a deposit as little as 5% with the government underwriting 15% of the property value. In doing so the Government would be guaranteeing 80% of the value of the property which would enable homebuyers to move into a new home. This scheme will apply to both new build and older properties.
Blaser Mills Solicitors have a number of experienced residential property lawyers who will be able to assist you in your property transactions. Please contact Head of Residential Property Alexandra Kirk for further details.