28th February 2021

Are you ready to get on to, or move up the Property Ladder? Right now could be the best time to do so!

A new mortgage guarantee scheme to help people with small deposits get on the property ladder is set to be announced during this week’s Budget on Wednesday 3rd March 2021.

The government will offer incentives to lenders, bringing back 95% mortgages which have “virtually disappeared” during the pandemic, the Treasury said.

The new scheme is not restricted to first-time buyers or new-build homes, but there will be a £600,000 limit.

Boris Johnson said he wants “generation rent” to become “generation buy”.

The prime minister added: “Young people shouldn’t feel excluded from the chance of owning their own home and now it will be easier than ever to get onto the property ladder.”

Chancellor Rishi Sunak – who will unveil the scheme in a Commons speech on Wednesday – added: “Owning a home is a dream for millions and we want to help as many people as possible.”

The coronavirus pandemic has meant there are few low-deposit mortgages available, the Treasury said, with just eight on the market in January.

Low-deposit mortgages are often seen as riskier by banks as they are more vulnerable to negative changes in property prices – meaning people hold more debt than their home is worth.

Under the new scheme, which will launch across the UK in April, the government will offer to take on some of this risk.

Are you ready to make that long-awaited move a reality this year? Do you need to sell your home first to take advantage of the new deals? Why don’t you contact Target Property Services NE, we will help you get started……