The chancellor Jeremy Hunt is expected to extend the mortgage guarantee scheme for another year to help those struggling to cope with increasing mortgage rates, as part of the Autumn Statement next month.
It is understood the Treasury is looking at making the scheme, which helps people take out a mortgage with a 5% deposit, available for a further 12 months.
The mortgage guarantee scheme, first introduced in March 2021 by the then chancellor Rishi Sunak, was designed to encourage lenders to offer mortgages to borrowers with a smaller deposit. But mortgage rates have since soared, while many people struggle with the higher cost of living.
The Sunday Times reports that the Treasury is also examining options for a new kind of ISA encouraging people to save for a first home.
Other ISAs, such has Help to Buy, which rolled-out in 2015 under former chancellor George Osborne and ended on 31 March, were criticised as property prices rose higher than the scheme’s limit.
Under its rules, buyers were awarded a 25% bonus from the government on homes worth up to £250,000 in England and £450,000 in London.
Hunt is also considering increasing the £450,00 upper limit on house purchases funded by a Lifetime ISA, where government adds 25% to savings aimed at building a deposit, although no decision has yet been made.
The chancellor will announce the Autumn Statement on 22 November.
Every time Government money is pumped in to help buyers out property prices rise to swallow it up. The problem we face is supply. People say the Government should build more affordable houses. The Government don’t build houses, property developers many of whom are party donors are the ones that build houses. Why should they build affordable? They have a duty to their shareholders to maximise profit. They might get planning permission on the basis of providing a percentage of affordable property in a development but soon find excuses not to do it in the same way they seek to wriggle out of Section 106 and Community Infrastructure levies that are supposed to pay for the extra infrastructure needs like schools and doctors that are needed to support the people who move into their developments. Anyway, how much is a so called affordable property? With our low wage economy (a deliberate move to attract foreign manufacturers to set up in the UK) even “affordable” is not affordable for many. These people can’t afford to buy so rent instead. Trouble is rents are rising as being a landlord is much less attractive these days and these people soon won’t be able to afford to rent either. What happens then?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
” The problem we face is supply.”
No the problem is overpopulation
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register