Help to Buy Scheme Launched Will Mean More New Homes Are Bought
Yesterday saw the launch of a new homebuyer scheme in the UK.
Online PR News – 21-March-2013 – The new scheme, called Help to Buy, was launched by the Government
at the 2013 budget announcement. Announced by the Chancellor of the Exchequer, George Osborne, the
Help to Buy scheme has been introduced to stimulate the property market and help more people buy homes.
The Government has made available £3.5 billion in order to fund the scheme and it is expected to help
around 74,000 house buyers.
The new scheme is available for both first-time buyers and existing homeowners. There are two types of
schemes under the umbrella scheme, the equity loan scheme and the mortgage guarantee scheme.
The equity scheme will commence from 1st April 2012 and will help those who want to buy a new build home.
A minimum of 5 per cent deposit is required as part of this scheme and the Government will lend up to 20 per
cent of the value of the property as part of an equity loan. The loan is interest free for five years and the
maximum loan that can be given is up to £120,000. The loan will be repaid when the property is sold.
The mortgage guarantee scheme will be available for new homes for sale and existing properties and will be
available from January 2014. This scheme is designed to encourage lenders to offer better access of high
loan to ratio mortgages with a lower deposit amount. The scheme is available to first-time buyers and existing
homeowners who are struggling to move to a larger property. This scheme will run for three years and is
available on properties up to a value of £600,000.
Sonya Bruce from What House? says: "This is great news for first-time buyers and existing homeowners who
can now get help with accessible mortgages and lower deposits. What House? believes that more homes can
now be bought and sold by house builders, which in turn will stimulate demand for the new build homes