Breaking News- Prime Minister makes pledge to reduce mortgage deposits.
Quick Read- Good news announced for first time buyers as the government pledges to introduce long term fixed rate mortgages with deposits as little as 5%.
Yesterday the Prime Minister announced that 2 million first time buyers could be a step closer to buying their first home through lower deposit mortgages. In a speech during the virtual Conservative Conference, Boris Johnson said he wanted to 'fix our broken housing market' with the new scheme, further details are yet to be announced.
The intention is to help first time buyers who are struggling to save the larger deposits required by mortgage lenders accompanied with soaring house prices in recent years. The government has announced that buyers will be able to borrow 95% of the value of the property they wish to purchase. This will help those buyers unable to save the 15-20% deposits currently demanded by many lenders.
The PM added that the scheme would 'give the chance of home ownership and all the joy and the price that goes with it to millions who currently feel excluded'.
The news will be welcomed by those who have been saving for many years to afford a deposit and to those who have been affected by mortgage lenders asking for increased deposits during the COVID19 pandemic.
The scheme is thought to be a replacement for the government backed Help To Buy scheme which boosted first time buyer deposits, this scheme is set to end early next year.
At first glance this looks like good news for the market as first time buyers are the kickstart to many chains of home movers.
Further details on when the scheme will begin and how it will work are yet to be announced, we will be keeping a close eye out for any news.