George Osborne has announced the introduction of a government-backed mortgage lender guarantee in order to help house hunters struggling to find a deposit.
The measure will offer guarantees which could support up to £130bn of lending over three years between 2014 and 2017 in order to encourage lenders to provide high loan-to-value mortgages. It could continue to run beyond this with the Bank of England’s agreement. It is one component of the Help to Buy scheme announced in today’s Budget. The other builds on NewBuy and First Buy to provide shared equity loans worth up to 20% of the value of a new build home with the borrower providing a 5% deposit. The Chancellor told a rowdy House of Commons he wanted to help those who aspired: “What s...
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