Yesterday, David Cameron and George Osborne announced the launch of Help to Buy mortgages.
At present, those who wish to own their own home are having to save up to 20% mortgages. This means that, to buy a £200,000 property, young people need to save a deposit of £40,000.
The new scheme will mean that those looking to buy their own home will find raising the initial deposit much easier. To use the same example of a £200,000 property, the buyer would need to save £10,000.
In order to encourage as many banks as possible to sign up to offer Help to Buy mortgages, the Government will guarantee up to 15% of the property’s value. This will help to alleviate the concern that banks often have about lending to younger buyers. Banks will pay a small fee to the government for each mortgage they sell, meaning that the scheme will be cost-neutral.
This scheme will mean that first time buyers in Great Yarmouth will be able to buy a house worth up to £600,000 with only a 5% initial deposit.
If you are interested in buying your own home with a Help to Buy mortgage, a number of banks have already signed up to offer them. I think that this is a fantastic opportunity for people in Great Yarmouth and I hope to see many people take up the offer and realise their dream of owning their own home.
Highstreet banks that have signed up to offer Help to Buy mortgages include Natwest, RBS, Halifax and Bank of Scotland.
More information can be found here.