Want to climb the real estate ladder this year? The government subsidy program was extended until the end of the year
The Mortgage Guarantee Scheme, which has already helped 24,000 first-time buyers, is now running for another 12 months with more time available.
Launching in April 2021, the program will help first-time buyers buy a home with her 5% down payment. This is just one of the ways the government can help homeowners.
Treasury Secretary John Glenn said:
“The expansion of this program will allow even more people to benefit and help the market through these difficult times.”
Since 2010, government programs have helped more than 687,000 of her households own their own homes. First-time buyers often find it difficult to save a large down payment. Mortgage guarantees have helped households overcome this barrier and secure the keys to their new home with just a 5% down payment.
More help for homebuyers
In addition to first-time buyers and current homeowners, the program also helps support the wider housing sector. The lender has reduced the availability of high LTV products during the Covid-19 pandemic, and in January 2021 he had only 8 products available with his LTV of 95%.
The government’s mortgage guarantee program helped bring back competition and consumer choice to the market, benefiting businesses and boosting the market.
Also, to help people get started on the property ladder, the government has increased the level at which first-time buyers start paying stamp duty from £300,000 to £425,000. In addition, first-time buyers pay just 5% on properties priced between £425,001 and £625,000, down from previous £500,000. Both measures he is limited to April 2025.
The government also continues to offer a variety of other options to support homeownership and the housing sector more broadly. For example, ISA purchase assistance combined with Lifetime ISA have helped more than 618,000 households climb the real estate ladder.
