Help to Buy: Mortgage Guarantee Scheme to End

Help to Buy: Mortgage Guarantee Scheme to end

It has been suggested this week that the Help to Buy Scheme is no longer required in the UK.

The Help to Buy Scheme was announced by the Government in 2013 and was introduces to assist those who were wanting to get onto the housing ladder but was expanded to help homeowners also.

What is the Help to Buy: Mortgage Guarantee?

  • Help to Buy: Mortgage Guarantees: 5% deposit mortgages are available from ten different providers (there were just five at the time of its launch, with the government acting as a guarantor for the mortgage. Unlike equity loans, this plank of the programme is not restricted to those buying new-build; subject to restrictions, anyone wanting to buy any home in the UK worth less than £600,000 is eligible for the scheme.

It is now set to come to an end at the end of 2016. It is said that the use of the scheme has declines whilst the amount of mortgage applications in the market has risen sharply.

Although the Mortgage Guarantee part of the Help to Buy Scheme is set to come to an end, the other parts of the Help to Buy Scheme, which include equity loans to buy newly-built homes, as well as the Help to Buy ISA savings scheme, aimed at those saving for a deposit, are unlikely to be affected.

News from the Mortgage Market in general was very positive for August. Lending was up on previous months and it is imagined that the cutting of interest rates has played a large part in this. August 2016 saw the highest level of lending since the same month of 2007.

If you’re looking to get onto the property ladder or you’re already a homeowner and are looking for a new deal, simply get in touch. We offer a consultation and we’re happy to see you at our office, in your home or workplace, the choice is yours. Call us on 0800 044 5733 or complete the form below and we will be in touch as soon as we can.

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