Government pledges 95% mortgages for two million first-time buyers. Read more
Updated: Jan 2
What has the Prime Minister pledged?
Speaking at the Conservative party conference last month, the Prime Minister said he wants to ‘turn generation rent into generation buy’.
What he proposes, is to be able to open the door to long term fixed rate 95% mortgage which comes at a time where most 90% and even 85% mortgages have been taken from the market due to covid 19. This leaves First Time Buyers facing an up hill struggle trying to find a 15% deposit to get on to the property ladder.
How would it work?
The government is yet to provide details of how it plans to make mortgages more readily available, but it might require changes to current regulations or direct intervention.
One possibility could be for the government to guarantee the loans, meaning it would be responsible if borrowers default, this would be similar to older schemes that the government has since stopped.
Currently, there is no firm path, however it seems that 2021 could see the start of 95% purchases being back.
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